The High Court last month allowed creditors to join the winding up suit filed by import and export firm San Giorgio Limited, attracting nine other suppliers who are seeking a total of nearly Sh300 million to join in the suit.
Now, WoW Beverages, which distributes Jack Daniels whiskey in Kenya, has joined the petition claiming Sh15 million alongside Professional Marketing Services (PMS), food supplier Wazaran Limited and Nairobi Flour Mills which want to recover Sh30 million, Sh6 million and Sh3.7 million respectively.
“Take notice that Nairobi Flour Mills, creditor for Sh3.7 million, intends to appear at the hearing of the petition to participate in such petition for a winding up order,”says the miller in court filings.
The three firms have joined San Giorgio Ltd, Kenblest Group, Githunguri Dairy, Kappa Oil, Insync Media, Star Times and Nairobi Flour Mills. Nairobi Bottlers Limited, which joined the suit last month, has now dropped out.
The Association of Kenya Suppliers has however opposed the move and joined the suit throwing its weight behind the troubled retailer which owes its members a total of over Sh3 billion. The Association of Kenya Suppliers holds that the traders seeking to wind Uchumi up have not proven that the retailer is beyond salvation.
It adds that members have worked out a repayment plan with Uchumi, and that the troubled retailer is searching for a strategic investor to get it back on the rails.
Kevian Kenya Limited founder and chairman of the Association of Kenya Suppliers Kimani Rugendo says his firm is owed over Sh100 million but is willing to work out a repayment deal.
Mr Rugendo earlier this month said that many of Uchumi’s large creditors are willing to convert their debts into equity.
His Kevian Kenya Limited already has 275 shares in the troubled retail chain. “It’s not enough for a petitioner to allege that a company has defaulted on a debt. The petitioner has to demonstrate that the only way out is liquidation. The petitioners have not made such an attempt. I and the members of the association have been involved in negotiations and I am aware that Uchumi has put in place a workable plan to ensure all debts are settled,” Mr Rugendo says.
The company boss Julius Kipngetich on Friday said that Uchumi had made two proposals to unlock the stalemate.
Justice Farah Amin will hear the case on June 17.
