The meeting between Nakumatt Administrators and the creditors on Wednesday 14th March 2018 ended with no consensus as the creditors sharply differed with the administrator and rejected his proposal. The meeting was held at Oshwal Centre Westlands, Nairobi.
The creditors who include suppliers, landlords and banks are collectively owed Sh35.8 billion, was meeting with the struggling retailer’s administrator to weigh on strategies expected to fast track turn around and payments to creditors.The administrator, PKF consultant Peter Kahi who was handed administration powers after a High Court decision tried in vain to outline cost cutting and downsizing initiatives expected to generate some funds for the supermarket.
Kahi proposed debt waiver or conversion to equity to the creditors. He stated that no bank currently wants to be associated with them and that Tuskys was the only saviour they are looking at. While addressing the creditors, he said, “We are currently working with Tuskys and awaiting Competition Authority of Kenya's green light. Tuskys is our only key in my view since banks can not come near Nakumatt.” But this did not go down well with creditors as some of whom questioned Tusky’s financial position.
“PKF shall have no liability or responsibility to the extent that any information supplied to it or representations made to it, or on the basis of which this document has been prepared, is inaccurate,incomplete or misleading,” read part of the ducument kahi supplied to the creditors.