New Mumias Sugar Company administrator has been ordered to compile the troubled miller’s debts as at the end of July and file a report in court.
High Court judge Josephine Mong’are directed Mr Harveen Gadhoke, whose appointment took effect on Monday to start the compilation immediately but not later than 21 days from the date of the ruling.
The judge said the report should be filed in court within 42 days from the date of the ruling and directed the matter to be mentioned before her on September 20 to confirm compliance.
“It is important for this court and for the sake of the other creditors waiting in line to know what is the status of the recovery process of the debt secured by the debentures held by the 1st respondent (KCB Bank) and for which the 2nd respondent (PVR Rao) had originally been appointed to receive and reduce or pay off the indebtedness,” the judge said.
Justice Mong’are made the directive after he appointed Mr Gadhoke as the administrator for the troubled miller, following the expiry of the term of Kereto Marima, who was appointed last year.
“It has now become extremely necessary for the court to appoint a new administrator to secure the assets of the company and comply with the objectives of the administration order as set out under section 522 of the Act,” the judge said.
Justice Mong’are further directed Mr Rao, the KCB-appointed receiver manager to present detailed records to the court for the judge to determine if indeed the administration process was meeting its objective.
The miller was placed under receivership by KCB Group in 2019 over an unpaid loan of Sh545 million.
Apart from KCB’s debt, the miller owed Ecobank Kenya (Sh2 billion), French development finance institution Proparco (Sh1.9 billion), and Commercial Bank of Africa (Sh401 million).
