High court judge Mr Erick Ogolla has temporarilly suspended the liquidation of Dubai Bank for 90 days and has directed that the respondents fully consider the proposal by Ms Sovereign Financial Holdings to inject Ksh 2.2 Billion into the bank to save it from liquidation.However, the receivership placed over the bank by Central Bank of Kenya due to cash flow problems shall still remain in force.
“The respondents should consider the proposal together with any other proposal by the depositors or other interested parties and report to the court about viability of the proposals,all the properties and assets of Dubai Bank whether in Kenya or elsewhere, and in whose possession or custody must be disclosed.’ said Judge Ogolla
This comes after a depositor with the bank — Richardson and David Ltd — wanted to stop the liquidation but proposed to convert their deposits into equity so as to become shareholders.
Before Dubai Bank was put under receivership,Richardson and David Ltd had deposits amounting to over Ksh 140 Million.
