PrideInn Group chain of hotels says it has lost Sh90 million in contracts following the advertisement of a petition by a Mombasa-based hotelier seeking its winding up over a Sh86.3 million debt.
This has so far included loss of large contracts with Institute of Certified Public Accountants of Kenya and the United Nations worth Sh45 million each.
The two organisations were to have conferences at the hotel at the end of this month and June respectively.
PrideInn Hotels and Investments Ltd has filed an application in court seeking Tropicana Hotels Ltd owned by Mr Salim Sultan Moloo retracts and apologise for the advertisement in the media and the Kenya Gazette.
The hotel chain claims the move has created anxiety among stakeholders in its business including banks and creditors.
“The public relations of the business of the petitioner which involves hotel and hospitality whose nature requires a good public image and reputation has been greatly damaged by the advertisement,” read the application. It further states that there is panic among the public, bankers and clients.
Through lawyer Natasha Ali, the hotel group further argued the social media platforms are abuzz with the information which is causing “chaos” with creditors.
Ms Ali has filed an objection to the winding up petition by Tropicana Hotels Ltd saying it is in contravention of the Insolvency Act.
She told Justice Patrick Otieno sitting in Mombasa that the petition was also in contravention of Section 1023 (4) of the Companies Act 2015.
“The petition filed in court is defective, any consequence arising in the petition would have been grounded on a foundation that it cannot hold in law,” said Ms Ali.