The High Court has appointed a South African company as the new administrator of the debt-laden logistics firm Multiple Hauliers Ltd after it agreed to settle its creditors.
- The verdict delivered by Justice Alfred Mabeya allowed the receiving company, Amava Group Capital Ltd, to take over Multiple Hauliers’ settlement bid by December this year.
- Mabeya also ordered the receiver company to compile a report that will inform creditors of the settlement progress after every 60 days, with the first report expected on or before 14th November this year.
- The appointment of a new administrator is a sigh of relief for Multiple Hauliers Ltd after the exit of its initial administrators in April this year.
“From the record, one of the investors, Amava Group Capital (Pty) Ltd of South Africa has signed a term sheer with the company on 29/5/2024. The precondition to the term sheer is a guarantee of US$ 8.5 million,” the judge said in the ruling.
The ruling determined that viable capital injection by the receiving companies expressing interest in the insolveny firm would quickly resolve its debt challenges and satisfy frustrated creditors.
“In view of the foregoing and having on mind that there is only four months to the conclusion of the deal that would favour all the creditors. I am satisfied that this is a proper case to exercise the discretion I’m favour of extending the orders in force,” the judge ruled.
“With the foregoing in mind, the question is, should the company be given time to finalize the deal and realize the funds being injected and pay off some of the debts or should it be left to collapse?” the ruling further said.
The insolvent logistics firm owes various lenders KSh 14 billion since December last year. They include: NCBA Bank (KSh 7.2 billion), Synergy Credit Ltd (KSh 532 million), Co-op Bank and KCB (KSh 1.2 Billion), and NSSF (KSh 6.9 million).
NCBA appointed administrators in June 2021 to take over the company’s affairs but the action was blocked by a court decision after Multiple Hauliers sought an application challenging the move. The creditors decided to resolve the dispute in a structured settlement plan to prevent a liquidation process.
