Triton liquidator moves to court to stop sale of assets

The liquidator of fallen oil marketing company Triton has gone to court seeking to block two companies associated with its fugitive owner, Yagnesh Devani, from disposing of assets estimated to be worth billions of shillings, setting in motion another legal battle that could delay the anticipated winding up of the collapsed petroleum company.

In an application expected to be heard at the Milimani Commercial Court on Monday morning, Triton’s interim liquidator, Ponangipalli Rao, is seeking orders to stop managers of the two firms - Dreamcatchers Limited and Camelot Estates - from selling prime assets which are suspected to have been developed using money drawn from Triton Petroleum Company’s accounts.

Mr Rao argues in papers filed in court that the sale of the assets - which were not attached by any of Triton’s creditors - may jeorpadise unsecured creditors owed money by the collapsed company.

Among the property said to be in the process of being sold are a housing development located along General Mathenge Drive owned by Dreamcatchers Limited and Camelot’s “multi-billion shilling” property complex situated on Nairobi’s Waiyaki Way.

Triton’s main creditors include the Kenya Commercial Bank, Fortis Bank Nederland NV PTA Bank plus a host of other unsecured creditors including some oil marketing companies.

“The said property would appear to have been developed using funds from the now defunct Triton Petroleum Company and would be some of the assets that may form part of the liquidation account for unsecured creditors of Triton once the winding up proceedings against Triton are concluded. Its imperative that these assets are preserved and protected pending finalisation of the winding up proceedings,” said Court papers filed by the liquidator through Daly & Figgis Advocates last week.

Mr Rao was appointed to manage assets of Triton, a firm belonging to Mr Devani, which was placed under receivership last December.

Mr Devani fled the country late last year in the wake of mounting pressure by oil companies following Triton Petroleum’s failure to make deliveries for oil imports estimated to have been worth 7.6 billion shillings.

A warrant of his arrest was issued by a Nairobi court and Interpol ordered to pursue him.

Mr Devani was sued for allegedly stealing Sh2.7 billion from KCB.

The bank has also sued Triton for Sh2 billion for oil imports secured by the bank through various debentures.

Several of his senior managers and workers including Peter Kimathi, William Mundia and Sunil Somai were arraigned in court and charged with various criminal offences relating to the Sh7.6 billion oil scandal.

The directors however argued before court that they could not take plea on behalf of the company, and on Thursday a Nairobi court ruled that the three would not be facing criminal charges.

According to Triton’s liquidator, Mr Devani’s “proxies” are suspected to have been behind the plot last week to dispose of the assets held by Dreamcatchers Ltd and Camelot Estates.

“The purported sale of the said development is an attempt by Mr Devani, through his proxies, to dispose of assets obtained through diverted funds from Triton whose assets would be susceptible to being recovered or sold for the benefit of unsecured creditors, ” says Mr Rao in his submission adding that the proceeds of the sale should be held in trust for Triton.