This archive report was first published on 13 October 2019.
On October 13, 2019, Uchumi Supermarkets faced a setback in its efforts to restructure its debt after a proposal to write off a significant portion of its Sh3.6 billion arrears was rejected by some suppliers.
The proposal, which was agreed upon in a creditors meeting in May, would have seen suppliers take a 70 percent cut on the struggling retailer's debt.
However, the proposal was rejected, and the court has directed the retailer's Company Voluntary Arrangement (CVA) supervisor, Owen Njenga Koimburi, to engage the secured creditors and present a report in 30 days outlining how they will be paid by Uchumi and the retailer's overall plan.
Uchumi also received a reprieve after the court issued an injunction stopping the determination of other cases against the retailer and landlords from kicking them out of premises owing to unpaid rent until the case is determined.
The ruling states that a stay be and is hereby granted on all legal proceedings pending before other courts, tribunals, and quasi-judicial bodies against Uchumi Supermarkets Plc pending the hearing and determination of this petition or further orders of the court.
