Nakumatt liquidation has been moved to February 2021 by the High Court after the administrator requested an extension of the process.
In a ruling made on November 5th, 2020, Judge Alfred Mabeya extended Nakumatt’s administration to February 10, 2021, when the liquidation process is expected to close.
The Parker Randall administrator cited a lengthy windup process that was made worse by COVID-19 related disruptions.
In 2019, remnant Nakumatt branches’ sale realized a paltry KSh 422.5 Million against an outstanding debt estimated at KSh 38 Billion.
But even with liquidation of Nakumatt, analysts maintain that unsecured investors who bought its KSh 4 billion commercial paper, are unlikely to get anything out of the retailer’s liquidation.
Nakumatt failed to redeem its commercial paper, the default exposing individual holders, investment banks, fund managers, insurance firms, and other dealers, to huge losses.
The insolvent Nakumatt Holding, was considered Kenya’s largest supermarket chain some 4 years ago. At the height of its market clout, Nakumatt’s network included 45 in Kenya, 9 in Uganda, 5 in Tanzania, and 3 in Rwanda.
The retailer packed a turnover of more than KSh 52.2 billion.
Like, Tuskys supermarket, Nakumatt’s trouble begun with cash flow problems.
Following its collapse, creditors have opted to go for properties owned by owner of the defunct outlet Atul Shah.
KCB, Diamond Trust Bank, StanChart, and the Bank of Africa (BOA) are locked in an auction row with Shah, in their bid to recover KSh 7.5 billion from the business.
Nakumatt had entered voluntary supervision in early 2018 as it sought to protect itself from its creditors. The retailer owes KSh 20 billion to suppliers, while landlords, banks, and commercial paper holders are owed close to KSh 18 billion.
On the list of the biggest Nakumatt creditors are banks, who are owed KSh 6.9 Billion, Kenya Revenue Authority (KRA) KSh 1.8 Billion, and Trade Creditors KSh 18.6 Billion.
Kenyan Wall Street