Mumias leasing hits wall again

A fresh attempt by the receiver manager of Mumias Sugar Company (in liquidation) to lease out the assets of the rundown State miller has hit a new bump.

This is after the rejection of the leasing bid by the company’s creditors involved in ongoing insolvency proceedings.

“Take notice that the said Tact Consultancy Services is a stranger to the insolvency proceedings mentioned herein and do not hold the mandate of the court nor any of the creditors or lenders to dispose of any assets of Mumias Sugar Company Limited whatsoever whether by an outright sale or tenured lease,” read a joint public notice by Kimeto & Associates Advocates and Khaminwa & Khaminwa Aadvoctaes, issued on Friday.

According to the two parties, the High Court has issued clear conservatory orders restraining the disposal of all immovable and movable assets of the company and two separate occasions in May and July this year.

“Any person or entity purporting to interfere with the assets of the company without the express approval of the Court risks both criminals and civil action by the creditors,” the notice added.
The warning comes just four days into a fresh attempt by Mumias’s KCB Group appointed receiver manager to lease out the assets of the firm.

On Monday, Panangipalli Rao from the Tact Consultancy invited fresh investor bids for the leasing of the assets with the bids running to August 31.

The leasing process which has the backing of government is tipped to offer the ailing miller a new lease of life by instilling new infrastructure and efficient management.

The receiver manager’s previous attempt to lease out Mumias assets via a privately initiated process flopped.