Corporate

Spencon in fresh Sh84.4m debt claims

Spencon is currently under receivership for defaulting on a Sh871 million loan advanced by KCB. FILE PHOTO | NMG
Spencon is currently under receivership for defaulting on a Sh871 million loan advanced by KCB. FILE PHOTO | NMG 

Collapsed contractor Spencon is facing an Sh84.4 million claim from a sub-contractor it hired in 2013 and its lawyers Murugu, Rigoro & Company Advocates.

Subcontractor Ndane Construction has filed a suit demanding Sh19.5 million, while the firm’s lawyers Murugu, Rigoro & Company Advocates are seeking a declaration of insolvency for the once mighty Spencon following its failure to pay Sh64.9 million in legal fees.

Spencon is currently under receivership for defaulting on a Sh871 million loan advanced by KCB. The collapsed contractor’s administrators PricewaterhouseCoopers (PwC) last month invited creditors to a meeting to prove their debts as it seeks to proceed with liquidation of the firm’s assets.