Old Mutual faces liquidation threat in debt wrangle with Tropic Air Limited - Capital Business
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Old Mutual faces liquidation threat in debt wrangle with Tropic Air Limited

NAIROBI, Kenya, Jan 16 – Old Mutual Insurance Kenya Limited is facing a legal tussle over unpaid debt owed to Tropic Air Limited.

Tropic Air Limited filed a liquidation suit at the High Court’s Nairobi Commercial & Tax Division, demanding to be paid $3,000,000.

Liquidation is when a firm is closed and its assets are sold to pay creditors.

“TAKE NOTICE that within Twenty-One [21] Days after service of this notice on you, excluding the day of such service, the company must pay to TROPIC AIR LIMITED, P.O. Box 161-10400, Nanyuki the sum of US$3,000,000 claimed by the said TROPIC AIR LIMITED being the amount due and payable under a policy of insurance and as directed by the Regulator, or the company must satisfy the Court that the company has a counter- claim, set-off or cross-demand against TROPIC AIR LIMITED which equals or exceeds the sum claimed by TROPIC AIR LIMITED and which the company could not set up in the action or proceedings in which the order was obtained,” the court ordered.

“FURTHER TAKE NOTICE THAT failure to pay the afore-stated amount shall result in TROPIC AIR LIMITED filing for a liquidation order against your company.”

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