The West Africa Logistics Solution Ltd SL (WALS) has declared bankruptcy as conditions in the mining industry deteriorate and their sole customer remains out of business operations.
WALS is a clearing company in Sierra Leone and does most of the clearing for Shandong Steel in their Tonkolili Iron Ore mining project. Shandong Steel stopped all mining operations in November 2017.
That resulted in WALS not receiving any income but continue to support their local staff for five months until the company ran out of funds. In March 2018, the board of directors of WALS decided to close their sole office at 20 Siaka Stevens Street in Freetown, Sierra Leone due to lack of funds to run the day-to-day operations of the office.
Since the company was not in operations for over a year and not generating any income, that combined with accumulating interest on debt legally secured with their financial institution the company has no option, but to file for bankruptcy liquidation.
The company will dilute all shareholders, dissolve the board and discharged all debts. WALS was one of the leading logistics company in Sierra Leone with over 60 employees. The company went above and beyond expectations to keep the business solvent.
However, a drop in the price of Iron Ore in the financial market led the shutdown of mining operations of their sole customer Shandong Steel, which had a negative and devastating effect on WALS that resulted into bankruptcy due to insolvency.