Peter Obondo Kahi, an Independent Administrator appointed on Monday following a court ruling, has officially taken over the management of Nakumatt Supermarkets.
In compliance with the Court Order, the Administrator’s primary objective for the administration will be to explore business recovery avenues for Nakumatt Holdings as a going concern. This is aimed at achieving a better result for the Company’s creditors which would have been impossible; had the Company been wound up.
Speaking during a handover ceremony following a Board meeting at Nakumatt Headquarters, Mr. Kahi confirmed that he shall be hitting the ground running and has lined up a consultative initial suppliers meeting on 31st January to chart the way forward.
On his part, Nakumatt Holdings Managing Director, Atul Shah confirmed the hand over to Mr. Peter Obondo Kahi.
The administration order in relation to Nakumatt will enable the firm achieve a better outcome for its creditors as a whole than would likely be the case if the company were to be liquidated, principally because:
- the administration will enable Nakumatt to be maintained as a going concern. Nakumatt shall continue to trade and generate revenue to meet its ongoing financial obligations; and
- the administration and continued trading of the Company will provide an opportunity for the business to reassess its financial position and options for restructuring and the time to implement a business turnaround. Importantly, pursuant to section 560 of the Act, while a company is under administration, there is a moratorium on certain legal processes, including a moratorium against enforcement of security over the company’s property or the exercise of a right of forfeiture by peaceable re-entry, without the consent of the administrator or the approval of the Court.
Last year, Nakumatt management had expressed apprehension that in the absence of an administration order, there would have been a significant danger of the firm being wound up.