Nakumatt files for administration on new rescue plan

Troubled retailer Nakumatt Holdings has applied to the high court for an administration order in accordance with insolvency act.

“The directors of Nakumatt Holdings Limited (“Nakumatt”) have today (30/10/2017) applied to the High Court for an administration order in accordance with section 532(1)(b) of the Insolvency Act (2015) (“Act”),” The company said in a statement.

The firm has proposed that Mr Peter Kahi of PKF Consulting Limited be appointed as an administrator and will perform his functions in the interests of Nakumatt’s creditors.

High Court Judge Justice Joseph Onguto has ordered that the application for the order to be heard on 8th November 2017.

Going into administration effectively means your company is being taken under the management of a court-appointed administrator – who must be a licensed insolvency practitioner (IP) – appointed by the courts, your creditors, or your company directors.

The retailer has been struggling with a massive debt amounting to more than KSh30 billion.

In the statement, Nakumatt directors are ‘optimistic that the Court will make the administration order in relation to Nakumatt as the order will enable Nakumatt to achieve a better outcome for its creditors as a whole than would likely be the case if the company was liquidated.”

However, “The decision to apply for an administration order was a difficult and complex one that was carefully considered by Nakumatt and its advisors.” Without it, they say “there is a significant danger of it being wound up with inevitable consequence.’