Fallen Nakumatt Supermarket creditors will have to wait longer to know the fate of the collapsed giant retailer after the High Court postponed ruling on the matter to March 26.
Judge Mary Kasango was expected to issue directions on the fate of Nakumatt, including the tenure of the administrator and whether to endorse liquidation of the retailer, but it was postponed.
The fate of creditors of the ill-fated retailer was sealed on January 7 when a majority of Nakumatt creditors voted to liquidate the company with 141 of the 169 creditors present during the meeting supporting the proposal by the administrator while 28 opposing the move.
Should the courts endorse the vote by creditors, it will pave way for the court-appointed administrator, Peter Kahi, to dispose off Nakumatt’s few remaining assets, including its headquarters.
The only other assets remaining is some inventory from Nakumatt branches currently stored at the High Ridge branch.
Parcels of land spread across the country have already been charged on loans with some bank credit charged against properties owned by sister companies and third parties.
Kahi could also pursue the company directors to recover the Sh1 billion loan they owe the collapsed retailer.
At the same time, the court is expected to rule on the fate of the administrator whose term expired on January 22.
His term expired in January 2018 but was extended by the courts for another 12 months to enable Kahi sort out the mess at Nakumatt.
Prior to the creditors’ approval, the administrator had already sold Nakumatt assets from six branches to Naivas Supermarkets at Sh422.5 million.
Kahi rooted for liquidation saying Nakumatt had no branches or assets hence it could not borrow for resuscitation.
According to Kahi, the retailer relied on a very weak business model, akin to a pyramid scheme, banking only on its brand name to secure cash and inventory from suppliers.
“It is impossible to turn around a retailer without branches and a Sh38 billion debt. It is impossible to attract investors with that balance sheet,” Kahi said at the time.
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