Properties worth billions of shillings belonging to Hashi Energy’s will be auctioned to cover part of an outstanding Sh5 billion debt.
The company, which went into voluntary liquidation in March this year, is undergoing financial turmoil that has led to the forced sale of its valuable assets.
The auction, orchestrated by Dalali Auctioneers, is expected to attract the attention of investors, industry players, and potential buyers interested in acquiring prime properties, particularly those within the energy infrastructure domain.
“All that property known as LR No.9695/50 Changamwe Mombasa County measuring 3.4Ha. The property is identifiable as Hashi Energy Mombasa Terminal located along Refinery Road,” Dalali Auctioneers said in a newspaper notice.
Facilities to be auctioned
The properties in question are located in Changamwe and encompass a range of crucial facilities, including an LPG handling facility, bulk petroleum handling facility, firefighting system, and service buildings. Others are pump manifold and extension pipe network.
Hashi Energy’s financial challenges have been a subject of concern, not just within Kenya but across its operations in various countries including Uganda, the Democratic Republic of Congo, and Tanzania.
The company’s decision to undergo voluntary liquidation earlier this year indicated its inability to meet its financial obligations and prompted a reassessment of its assets to settle outstanding debts.
Reports indicate that part of the funds were borrowed from Ecobank by the troubled oil company.
The decision to auction off these properties is a significant one, not only for the company but also for the wider energy and business community, and the successful sale of these assets could provide a lifeline for Hashi Energy’s creditors, potentially allowing them to recover at least a portion of the debt owed to them.
Fluctuating global prices
The auction also sheds light on the challenges that some energy companies are currently facing in an evolving market landscape. The energy sector has been under increased scrutiny due to its impact on the environment and the fluctuating global oil prices.
Companies like Hashi Energy, with operations across multiple countries, have been navigating a complex and often unpredictable terrain.
As potential bidders gear up for the auction, all eyes are on the proceedings and the potential outcome. The results of this auction will not only have an impact on Hashi Energy’s future but could also set a precedent for how distressed energy companies’ assets are handled in the face of financial crisis.
