The High Court has extended orders stopping KCB from auctioning the assets of debt-crippled Mumias Sugar Company. Another fallen pride of Kenya just like the failing Kenya Airways.
Yesterday in a meeting held by creditors and county government of Kakamega agreed on plans of reviving the company. The meeting, chaired by Dr John Khaminwa, resolved to appoint an administrator who would be answerable to all the parties and not just one creditor.
Mumias Sugar was placed under receivership three weeks ago after defaulting on loans amounting to Sh545 million owed to KCB.
So far, about 80 creditors have joined the case as a law firm sought to wind up the miller for failing to pay a debt of Sh76 million.
Statec, an Austrian Packaging company, Victoria Furnitures, Westlink Electricals and Hardware and Lesphine Investments ltd, a sugar distributor, who allegedly paid Sh26 million in advance for sugar supplies but was never supplied are among the creditors who have enjoined in the case.
Lawyer Jackline Kimeto is demanding her dues for representing the company since 2015 while 43 other creditors, sued as a group accusing the company of failing to pay them a total of Sh57.5 million.
Other creditors are Osho Chemicals, Milicons ltd and Proparco, one of the largest secured creditors and who financed the construction of a power plant at the miller.
Others are Sygenta, Galana oil, Victoria Furnitures, Copy Cat, Omaera Pharmaceuticals, Liaison Group Limited and Babs Security Ltd.
Kakamega County said in Court that it had set up a committee to see how they could revive the company.
The miller’s loans stood at Sh12.5 billion at the end of June 2018. It owed Ecobank Kenya Sh2 billion, French development finance institution Proparco Sh1.9 billion ,and Commercial Bank of Africa Sh401 million.
