NAIROBI, Kenya, Aug 28 – The high court has issued an order stopping Nakumatt creditors from attaching its properties over unpaid debts.
Commercial vacation judge Justice Joseph Onguto blocked the creditors and ordered Nakumatt to publish an advertised within seven days, with a view of inviting all creditors interested in appearing in the ongoing insolvency case, to file their respective submissions.
“It is hereby ordered that all creditors of Nakumatt Holding Ltd are prohibited from conducting any attachment, sequestration, distress and or execution against the company’s assets until further orders of the court,” said Justice Onguto.
High Park Mall, which is located in Nairobi’s Parklands area, was planning to seizure and auction Nakumatt goods to recover Sh8.829 million in rent arrears.
High Park Investments Limited is the third mall owner to attempt attaching Nakumatt’s goods to recover unpaid rent, following a similar move by Roysambu-based Thika Road Mall and Integer Limited on Uhuru Highway, which hosts Nakumatt Mega.
Thika Road Mall is seeking to recover Sh51 million in rent arrears while Integer’s debt stands at Sh23 million.
The order has also barred another firm, Highport Properties, from taking the attachment route to recover Sh5 million rent arrears from Nakumatt, which leases godowns from the real estate firm.
Highport has leased six godowns it owns to Nakumatt. The court documents do not, however, indicate where the godowns are located.
The retail chain recently suffered another blow as the Uganda Revenue Authority took control of its main warehouse in Kampala to recover Sh8.6 million in unpaid taxes.
Nakumatt’s employees have also joined the list of creditors fighting for payment in court, following their filing of a suit seeking to compel the retail chain to settle their salaries.
The retailer has indicated that it intends to shut down some of its non-performing stores as it restructures operations.
The case will be heard on September 18.