High Court Justice Francis Tuiyott has allowed Tuskys and Hotpoint 45 days to negotiate over the ongoing winding up lawsuit, in view of settling the case outside the court. This is yet another sigh of relief for the retailer, following last week’s preservation orders barring its creditors from auctioning its properties.
In a court mention on October 27th, the parties said they would need more time to settle the case.
Hotpoint earlier requested Tuskys to pay its debt plus interest and called for the appointment of Kolluri Venkata Subbaraya Kamasastry as a liquidator, saying that the supermarkets’ failure to pay for its goods have led to losses.
“The petitioner imports the goods sold to the company. As result, the failure to pay for the goods promptly, the petitioner is suffering losses,” reads a Hotpoint petition, “The petitioner has made repeated requests and demands to the company for the payment of the debt, but the company has failed, refused and neglected to pay the debt.”
Tuskys Ordered to Freeze Accounts Over Bank Debt
Separately, Tuskys will now be required to freeze its accounts over its debt towards Diamond Trust Bank. The order came after it revealed its Kshs 2.8 billion debt to Diamond Trust Bank and Equity.
The retailer owes Diamond Trust bank Ksh 2.5 billion in various facilities, including a term loan, letters of credit, Insurance premium facilities, and higher purchase facilities. A report by Citizen also reveals a Ksh 285.a million Equity Bank debt denominated in USD. Tuskys advocate Patrick Ogola says the accounts’ funds are crucial working operations, which, together with its stocks, form a vital part of its turnaround plan.
Tuskys’ anchors its continuity plan to the 2.1 billion loan facility from a Mauritius investor, to which Ksh 500.9 has been released as commitment.
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