Flower farm Karuturi Limited have appointed Mr. George Weru and Mr. Muniu Thoithi as Joint Receiver and Manager to recover Ksh 400 million lent to farm by CFC Stanbic Bank.
The farm in a statement said, “The appointment of Kuria Muchiru as Joint Receiver and Manager of the Company ceases to have effect immediately.”
In 2016, the High Court appointed Thoithi Muniu and Kuria Muchiru as joint liquidators on 6 April 2016 to help safeguard the assets of the Company, following the winding-up order of 30th March to avert a possible crisis and loss given the perishable and sensitive nature of the flower crop.
Karuturi receivership and liquidation has been dogged by litigation instigated by the directors that have hampered recovery efforts by the creditors who are owed significant sums of money.
On May 11, 2016, an application was filed in the High Court in which lawyers representing Karuturi’s directors questioned the qualifications of the two liquidators.
In December 2010, Karuturi Limited had secured lending from Stanbic Bank Kenya Limited Ksh 227 million and further lending of KSh390.9 million in January 2013.
CFC Stanbic Bank placed Karuturi under receivership in February 2014 after the flower firm defaulted on repayment of its Ksh 400 million loan.