Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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KaunganaDoDo wrote:KCB is owed over 1B shillings by Uchumi, and owed just around 0.5B by mumias, but it has decided against putting uchumi in adminstration, while putting mumias on the chopping blocks Exposure of Uchumi in KCB is much less than that,Uchumi Ngong Road Hyper land and building was sold in 2016 for ksh.1.2bn and part of the proceeds was used to clear debt owed to KCB. " Uchumi was also exploring government intervention which would come in the form of a bailout package in terms of a bridging loan structured just like the Sh678 million offered when Uchumi was placed under receivership a decade ago. The ambitious plan could have even seen them re-enter the regional market in just three years.
KCB keep the proceeds
But before the rubber could meet the road, the plan was thrown into a tempest. KCB, cautious of the winding up petition, withheld proceeds of the sale of Ngong Road Hyper after Uchumi sold the property for Sh1.4 billion, at a time when the retailer was almost running on empty shelves and badly needed the cash.
Kipng’etich said the retailer’s board has since been forced to change strategy as a result and decided to let KCB keep the proceeds to reduce finance costs. “The proceeds from the sale of Ngong Road Hyper helped reduce Uchumi’s debt owed to financiers from Sh2.5 billion to Sh1.1 billion,” Kipng’etich told Weekend Business. “Part of our focus in the stabilisation phase is debt reduction and these efforts will continue until Uchumi is debt free.”
https://www.standardmedi...s-quest-to-regain-glory
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