Nakumatt to pitch recovery plan to creditors

Struggling retailer Nakumatt has called for a meeting with creditor’s scheduled for next week as it seeks to get financial headroom to operate.

The cash strapped retailer will use the meeting to present a raft of recovery proposals to its creditors to get their buy in supporting its turnaround efforts.

Court filings indicate that Nakumatt owes its suppliers, manufactures and landlords an estimated Sh40 billion.

In a notice in the dailies, Nakumatt administrator Peter Kahi said only creditors whose proof of debt has been lodged with the administrator before the meeting will be allowed to vote for or against the rescue proposal.

“The administrator will in due course circulate his proposals to all creditors with claims against the company, for their consideration at the creditors’ meeting,” Mr Kahi said in the notice.

The meeting is scheduled for March 14.

Creditors will get the opportunity to voice their concerns, approve or reject proposed recovery plans put forward by the administrator.

“to be entitled to vote at the meeting, your proof of debt according to the insolvency act 2015 must have been lodged with me as previously advised in my notices published in the local dailies,” Mr Kahi said.

If endorsed, the move is likely to put Nakumatt under public scrutiny and enhance accountability.

The meeting follows a similar one held in January with suppliers as the administrator looks to stabilize its operations.

So far the company has expressed optimism with its restocking exercise, in which it expects to have 23 branches stocked up by mid next month.