Financially distressed petroleum dealer, Hashi Energy is disposing of multiple assets, including parcels of land amid liquidation to pay off its creditors after announcing plans to go into voluntary administration last year.
Liquidation is the process of bringing a business to an end and distributing its assets to claimants. This usually happens when a company is insolvent, meaning it cannot pay its obligations when they are due. As the company's operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims.
In a public notice on Tuesday, the distressed oil marketer put up on sale prime plots of land in Nairobi, Mombasa, and Kisumu in addition to liquified petroleum gas (LPG) handling plants and 31 trucks.
“The liquidator is inviting competitive bids for the sale of the following properties or plots of land and assets on “as is” condition,” the company said in the notice published on Tuesday.
Hashi Energy is owned by Kenyan tycoon Ahmed Hashi and has been a major player in the energy industry for over 30 years, with offerings in LPG cylinders, oil supply, and retail sales of petroleum products.
It had expanded its presence into Uganda, the Democratic Republic of Congo, South Sudan, Zambia, Rwanda, Mauritius, and Dubai before going into financial distress last year.
In March 2023, the company announced plans to go into voluntary administration, the first indication that the firm was financially troubled and couldn’t keep up with its debts.
Later in the year, Ecobank was allowed to auction the firm’s properties to recover debts owed to it by the company amounting to about Sh5 billion.
