Nakumatt supermarket. Photo/scoopnest.com
The cash strapped retailer Nakumatt has been offered major relief after the court has stopped all Nakumatt creditors from attaching the supermarket chain’s property to recover their dues.
Creditors of the retail chain have in recent months filed several suits seeking to attach Nakumatt’s property to recover amounts owed to them.However High Court Judge Joseph Onguto yesterday stopped the creditors and ordered Nakumatt to hold meetings within a week with those interested in appearing in the ongoing insolvency case to file their respective claims in court.“It is hereby ordered that all creditors of the company Nakumatt Holding Ltd are prohibited from conducting any attachment, sequestration, distress and or execution against the company’s assets until further orders of the court,” ruled Justice Onguto.They include High Park Mall which is demanding Sh8.829 million in rent arrears, Thika Road Mall (Sh51 million in rent arrears), Integer (Sh23 million), and Highport Properties (Sh5 million).Under Kenyan law any property belonging to a company or individual facing insolvency proceedings in court is protected from attachment for purposes of recovering debt.Nakumatt has also been holding talks with some of its creditors to reach an out-of-court settlement.Its employees are also fighiting to be paidtheir dues is another order Yesterday’s that has thrown into disarray against Nakumatt .They want the retail chain compelled to settle their salaries.Through the Kenya Union of Commercial, Food and Allied Workers the employees are claiming that Nakumatt has delayed their salaries, failed to pay overtime work as scheduled, is not implementing the 11 per cent salary increase with effect from May 1, 2017 to July 30, 2018.The insolvency case will be mentioned on September 18.