Mumias Sugar Company has been placed under receivership and PVR Rao (Tact Consultancy Services) appointed as the sugar miller’s receiver-manager. KCB Group announced on Tuesday.
“KCB Bank Kenya Limited can confirm that Mumias Sugar Limited has been placed under receivership to protect its assets and to the best extent maintain its operations,” KCB said in a statement on Tuesday.
The Receiver manager was conferred to oversee KCB Group debentures after an agreement by other lenders through Inter Lender Agreement on September 2010.
The Kenyan Government is the biggest shareholder owning 20%. KCB Group has 1.72% shares, Jubilee Insurance 1.46 % and two Standard Chartered Nominees Limited accounts at 1.4%. Individual shareholders hold 71.35% of the Nairobi Securities Exchange-listed firm.
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In its Financial Year ending June 2018, the miller postedKSh15.1 billion loss, double the previous year’s Ksh.6.7 billion loss. It attributed the loss to Ksh.4.9 billion impairment of its plant and machinery and low production following its plant shut down in the first and 4th quarter of the financial year under review.
The company has received over KSh3.2 billion bailout by the Government into reviving it since 2013.