A court in Amsterdam declared Africa Delivery Technologies Holding (ADTL), Kwik’s Dutch parent company, bankrupt on Friday after a disagreement with creditors. A former executive and other creditors fought for the payback of outstanding obligations, which led to this involuntary bankruptcy case.
The decision transfers responsibility for ADTL’s financial affairs to a court-appointed administration to guarantee that creditor claims are met.
Creditor dispute triggers bankruptcy declaration
The bankruptcy case began when Adam Grant, Kwik’s former head of sales, sued ADTL for wrongful termination and was awarded $75,000 in damages.
Kwik paid only the initial $25,000 installment, withholding the remainder due to concerns over Grant’s ability to meet French tax obligations related to the settlement.
When Grant refused to guarantee tax compliance, he initiated bankruptcy proceedings against ADTL, claiming the company was unwilling or unable to fulfill its debt obligations.
The Amsterdam court rejected Kwik’s tax-related defense and ruled in favor of Grant, allowing the bankruptcy to proceed. Grant’s claim was bolstered by other creditors, including Nigerian startup B54, which alleges Kwik defaulted on a $50,000 loan.
B54 has taken legal action in the Netherlands and Nigeria to recoup the amount. Due to the ongoing litigation, a B54 co-founder confirmed continuing proceedings but declined to speak further.
This creditor issue demonstrates Kwik’s difficulties in handling its global responsibilities amid tremendous development. While the bankruptcy declaration impacts ADTL’s corporate structure in the Netherlands, Kwik’s operations in Nigeria, where the company is still operating, are unaffected.
Kwik CEO affirms operational stability despite bankruptcy
Kwik CEO Romain Poirot-Lellig maintains that the bankruptcy filing does not reflect insolvency or operational failure.
He stated, “Whatever happened is not affecting the operations of the company. The staff are getting paid from the Nigerian company, and riders are getting paid. Everybody’s getting paid. Fulfilment and delivery services are continuing without disruption.”
Kwik has raised $6 million in funding to date, including $1 million in 2025, and currently holds $2 million in convertible notes loans that convert into equity over time. Poirot-Lellig emphasized that the bankruptcy relates solely to the Dutch holding company and not the Nigerian subsidiary, which serves over 300,000 merchants nationwide.
Poirot-Lellig said that the creditor is trying to coerce Kwik into paying the demand from B54 by using legal threats instead of legitimate court procedures. He further affirmed that talks to settle the unresolved issue amicably are still going on with Adam Grant’s legal team.
Unlike voluntary bankruptcy filings such as Gokada’s Chapter 11 protection earlier this year, Kwik’s case is involuntary, initiated by creditors seeking to recover debts. The court-appointed administrator will now oversee ADTL’s financial affairs, working to satisfy creditor claims while allowing Kwik’s core business to continue operating.
While Kwik’s ability to continue operations during the bankruptcy shows tenacity, it also illustrates the necessity for cautious management of creditor relationships going ahead, underscoring the complexity entrepreneurs face when managing cross-border legal and financial problems.
