Court stops KCB seizure of English Point Marina over Sh5bn debtWednesday June 08 2022
A judge has blocked KCB Group the appointed receiver-manager Kamal Anatroy Bhatt from taking over English Point Marina, pending the determination of the case filed by the real estate firm.
Justice Dora Chepkwony ordered the parties to maintain the status quo pending the determination of an application filed by Pearl Beach Hotels, which argues that the appointment of Mr Bhatt as the receiver manager was irregular.
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The real estate firm through Nick Ndeda argued that there was no justification for the appointment of Mr Bhatt, because the parties have been engaged in negotiations.
KCB Group seized the luxurious property one week ago and placed it under statutory management over a Sh5.2 billion debt.
“That pending the hearing and determination of this application, a temporary order if injunction be and is hereby issued restraining the 1st Respondent from appointing a receiver or receiver managers, administrators or exercising its power under the debenture,” the judge said.
Mr Ndeda also pleaded with the court to allow the firm’s directors unfettered access to the Penthouses named D1 and D2, where they permanently reside.
The firm also sought to bar KCB from selling or subdividing any of the property or any part of the building or development and its assets, pending the determination of the application.
Pearl Beach Hotels has been struggling to meet its obligations to the bank over the years.
KCB’s action to take over English Point Marina came after the bank tried several times to restructure the loan but the owners were still unable to meet the payments.
But Mr Ndeda revealed that the lender agreed to grant the firm loans between 2011 and 2018 and charged the English Point Marina.
However, the debenture and the charge instruments have been registered as required under the Companies Act.
He said the firm has been servicing the loan and enjoyed a moratorium that lapsed in June 2020. So far, the firm has paid Sh3.3 billion.
“That the 2nd respondent had evicted the directors of the applicant from the residential homes which are located on the premises rendering them destitute and denying them their fundamental rights as protected in the constitution,” he said.
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