[photo/standardmedia.co.ke/nakumatt]Nakumatt Holdings has moved to court seeking an administration order as it seeks time to turnaround its dwindling fortunes. In a statement, the supermarket chain said the orders, if granted, will help make payments to creditors than if it was liquidated.
“The administration and continued trading of the company will provide an opportunity for the business to reassess its financial position and options for restructuring and the time to implement a business turnaround,” said Nakumatt directors in the briefing note.
At the same time as an organisation is beneath administration, there may be a moratorium on positive criminal processes, along with a moratorium towards enforcement of safety over the enterprise’s property or the exercise of a right of forfeiture with the aid of peaceful re-access, without the consent of the administrator or the approval of the court docket, said the company.
According to news service Reuters sources, the retail chain owes creditors including landlords and suppliers as much as Sh20 billion. Rival Tuskys has proposed a merger to resolve Nakumatt’s problems and is willing to support it while under administration. The chain has proposed Peter Kahi of PKF Consulting be appointed an administrator.
The application will be heard by High Court judge, Justice Joseph Onguto, on Wednesday next week. According to Kenya’s Insolvency Act of 2015, a court can only issue an administration order if it is satisfied that a company may be unable to pay debts and that the administration may help repay the creditors.