Triton liquidator moves to court to stop sale of assets

This is the latest twist in the scramble for the assets by the major creditors of Triton.

The biggest tussle has been for the most valuable asset of the company––the massive multi-billion shilling oil terminal, which Mr Devani was building in Mombasa before his business empire imploded early this year.

In January, the High Court barred Mr Devani from selling or disposing of his shares in various companies associated with him.

But the liquidator argues that since there are no orders barring the said companies from disposing of their assets, there is nothing preventing them and Mr Devani’s other associated companies from selling the assets and leaving the companies as mere shells.

“The reason for the urgency is that the prime assets of the defendants valued at over Sh1 billion are in the process of being sold by the defendants,”

In the event that the said assets have already been sold prior the filing of the application, the liquidator wants the proceeds after the payment of any secured creditors be deposited with the Court or in an escrow account pending the hearing and determination of the suit.

Mr Rao argues a sale agreement would appear to have been concluded for both the assets.

Creditors have been locked in a row over the structure to be adopted in disposing of some of the assets has delaying the anticipated sale within the court’s stipulated time.

The court documents seen by the Business Daily indicate that whereas the property owned by Camelot is charged to the East African Development Bank, the proposed sale price is substantially higher than the reported outstanding amounts owed to the Bank.

Surplus from any sale, Mr Rao argues, should be held to the benefit of the said creditors.

A deed of settlement signed between Triton, Mr Devani and the Receivers on March 16, 2009 stipulates that after the sale of Camelot property, for not less than Sh1.1 billion, Sh470 million would be paid to receivers and Sh410 million to EADB which has a legal charge of the asset.

In August, the High Court ruled that the assets of the Triton Bulk Storage Company be sold in what was a win for Triton’s main creditor KCB and its appointed receiver managers.

Proceeds of the sale were to be banked in a joint account of KCB and Fortis Bank of Netherlands.

High Court judge Luka Kimaru ordered the disposal of the property in Mombasa within 60 days and that the money be deposited in an escrow account in a reputable bank to be managed by the advocates of KCB and Fortis Bank.

Justice Kimaru dismissed the application by Fortis Bank through Mr Keith Fraser of Hamilton Harrison and Mathews who wanted the entire proceeds handed over to the Dutch bank by virtue of a Sh75 million charge on the property.