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Supreme Court Gives the Green Light to Auction Karuturi Assets

Karuturi was placed under receivership on February 10, 2014. To forestall the receivership and sale of the suit assets, Karuturi filed a suit in court and applied for an injunction restraining the auction.

David Indeje is Khusoko’s Digital Editor, covering East African markets.
Stanbic Africa Holdings Limited is a Private limited with a Share Capital company based in the United Kingdom started accumulating more shares in the Nairobi Securities Exchange-listed firm in July 2018.

Stanbic Bank branch on Kimathi Street PHOTO: KHUSOKO

The Supreme Court of Kenya has dismissed an appeal by Karuturi Ltd, paving the way for Stanbic Bank to auction its assets to recover KSh1.8 billion debt.

Shareholders of Karuturi had sought to prevent the sale of the company’s assets and those of its guarantors, Surya Holding Limited and Rhea Holdings Limited, to repay debts owed to its secured creditors.

The five-judge bench comprising Deputy Chief Justice Philomena Mwilu, Justices Mohamed Ibrahim, Jackton Ojwang and Smokin Wanjala said matters of the appeal had not been discussed at the high court.

In the appeal, Karuturi had argued that it was not given a chance to examine the Deloitte Consulting Group’s audit post-receivership debt report and that they had raised constitutional issues which were not considered.


 

David Indeje is Khusoko’s Digital Editor, covering East African markets.

In my role as Community Engagement Editor For Khusoko, I care about our audience. engaging them, getting news delivered to them across a variety of platforms, and expanding the diversity of voices on our website.

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