KENYA: Sale of Nakumatt linked land halted
Nakumatt Prestige staff restock goods last week. PHOTO | SALATON NJAU
NAIROBI (DAILY NATION) – The High Court has temporarily stopped UBA from auctioning a prime plot owned by Park View Shopping Arcade over Sh118 million owed by Nakumatt Limited.
The auctioneer had commenced the process of selling the property which was scheduled for auction on Monday.
The new development came even as Justice Fred Ochieng, who was handling the case, told lawyers representing creditors and the administrator who turned up for the mentioning of the case that he is not in a position to make substantive decisions because he is set to go on transfer.
The judge suspended the auction temporarily pending the ruling of an application filed by Nakumatt on Friday.
The supermarket argues that the sale of the prime plot is against court orders upon granting of administration which halted all claims against the store unless approved by court.
The documents produced in court show that the vacant 1.7-acre land is situated in Westlands and registered in the name of Park View Shopping Arcade, opposite Westgate Shopping Mall, but was used to guarantee a loan advanced to Nakumatt.
The administrator is in court seeking to stop the bank “from selling by public auction or otherwise the property known as L.R no209/12174 situated in Westlands”.
The judge will issue his ruling on May 9 and until then the sale has been put on hold. But in its response the bank has asked the court to dismiss the suit, arguing that the vacant plot belongs to Park View Shopping Arcade and not the troubled retailer.
The bank says it advanced Sh250 million to Nakumatt Holdings Limited in December 2015 which was enhanced to Sh347 million in October 2016 and the property was used to guarantee the loan.
The lender says the guarantor cannot benefit from the moratorium issued by the court since it’s not part of Nakumatt.
The bank says that as of February the total outstanding amount was Sh118 million. AUTO – GENERATED; Published (Halifax Canada Time AST) on: April 09, 2018 at 06:05PM