Uchumi supermarket has begun the process of clearing all outstanding debt owed to suppliers of goods and services. The move is part of a Company Voluntary Agreement signed in March this year between the supermarket and 121 suppliers.
The retail chain has created an online portal for creditors to list all debt incurred before 2nd March 2020. Uchumi will verify the information given and come up with a repayment strategy.
“The CVA which was approved by the High Court directs that we verify all old debts through a transparent and sustainable process and we are asking all suppliers to register their debts within the next three weeks,”Mohamed Mohamed Uchumi Supermarkets CEO
Under the Company Voluntary Agreement, creditors agreed to a 30% cut of the outstanding debt. Additionally, 40% of the debt owed to unsecured lenders will be turned into non-cumulative convertible preference shares.
The troubled supermarket plans to sell some of its properties including land to raise the funds needed to settle the debt.