Kenyan High Court has endorsed Uchumi Supermarkets company’s voluntary arrangement (CVA) with its creditors to settle its KSh 3.6 billion debt.
Justice Mary Kasango of the Commercial and Tax Division in her ruling delivered 1 July, allowed the implementation of the CVA on condition that the Nairobi listed retailer pays all its debts within six months.
The CVA was endorsed at the creditor’s meeting on March 2.
“The decision gives us a chance to implement our recovery plan,” Uchumi CEO Mohamed Mohamed said.
According to the CVA, the retailer will not be liquidated.
Uchumi owes Chandaria Industries Ksh 69 million, Equatorial Nut Processors Ltd Ksh 21 million, Githunguri Dairy, Interconsumer Products Ltd and Professional Marketing Services Ltd are owed 45, 38 and 4 million shillings respectively.
The government through the National Treasury holds a 14.67% stake in the firm making it the second-largest shareholder after Jamii Bora Bank which holds 14.90%.
Uchumi went into insolvency on June 1, 2006, though it reopened 45 days later following the government’s injection of KSh675 million.