The High Court issued asset preservation orders which bar creditors from auctioning Tuskys properties. The court also barred the freezing of its accounts by various creditors. Tuskys advocate Patrick Onyango Ogola filed the order under a certificate of urgency, looking to protect the company’s assets from unlawful distress and execution
The ruling by Commercial Court judge Francis Tuiyott will bar several creditors from effecting auction. Nevertheless, the order does not affect Greenspan Limited. A Tuskys outlet at Greenspan mall closed after rent arrears piled up past Ksh 30 million.
Having read the affidavit of Patrick Ogola sworn on 16th October 2020, I hereby order a stay of any attachment, sequestration, distress or execution against the property of the company pending directions that are to issued on 27th October 2020. However, this order does not affect Greenspan Limited
Justice Francis Tuiyott
Hotpoint Appliances Limited and 12 other retailers had moved to court to compel the supermarket to pay up its arrears. The retailer had asked for 45 to 60 days to develop a payment plan.
Landlords claiming rent arrears through auctioneers led to the closure of multiple outlets including Komarock, Uganda branch, Tuskys Hakati, Eldoret, Tom Mboya, Kilifi, Kitale, Mombasa and now Ronald Ngala.
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