Multiple Hauliers EA Limited has found new suitors willing to pump billions of shillings into the debt-ridden transport and logistics company, in fresh efforts to rescue it from liquidation.
Appearing before Justice Alfred Mabeya on Tuesday, the firm pleaded with the court for more time to conclude the various agreements with investors, including foreign firms Kapend Investments LLC and Amava Consortium.
In an affidavit sworn by Managing Director Rajinder Singh Baryan, the firm said it needs more time to explore the full recovery efforts with timelines and report given to creditors and the court, periodically.
“Given the large quantum and complexity of the investment (and to deliver the best value to the creditors), the company and its advisors adopt a strategy of completing the investment through a consortium of suitable investors all working in alignment leveraging their core strengths,” Mr Baryan said.
He said the new investments present the company with the best option as a special-purpose vehicle, which will bring together other operations like mining in East and Central Africa, besides the logistics business.
Justice Mabeya noted that the firm was indebted to the tune of Sh14 billion with creditors including NCBA Bank (Sh7.2 billion), Synergy Credit Limited (Sh532 million), KCB Kenya and Co-operative Bank (Sh1.2 billion) and National Social Security Fund (NSSF) Sh6.9 million.
The NSSF said the money was deducted from employees but was not remitted.
Justice Mabeya directed all the parties involved in the matter to file their responses to the affidavit ahead of the hearing on July 4. The judge also extended interim orders stopping the firm’s liquidation until then.
Synergy Credit moved to court in March 2020 seeking to auction the firm to recover its debt. Later NCBA appointed administrators.
In a ruling on September 18, the same year, Justice David Majanja suspended the liquidation petition for 12 months. He directed the company to engage its creditors to reach a consensus on settlement.
Before the expiry of the 12 months, NCBA Bank appointed Julius Mumo Ngonga and Anthony Muthusi Makenzie as the joint administrators, a process that was challenged by Multiple Hauliers.
Mr Baryan said in the affidavit that Kapend Investments, a Canadian investment fund, has set up in Kenya with an interest in certain sectors including property development, real estate and specialised logistics.
He added that Amava Consortium, a South African holding company, comprises three sophisticated and well-capitalised investors, including a publicly cross-listed company on the London and Johannesburg stock exchanges.
“The approach taken by the company and its senior lenders is ‘consensual restructure’ as this represents the best return for all creditors including unsecured creditors,” he said.
Mr Baryan added that the employees of Multiple Hauliers will be re-deployed as part of the restructured entity.
In the affidavit, Mr Baryan has further detailed other timelines including completion of the remainder of the due diligence by June 5, receipt of tax and legal advice transaction structure by October 9, approvals and execution of final agreements by October 30.
“As part of the transaction, A-SPV will also issue a financial guarantee of US$8.5 million (Ksh1.1 billion) being a portion of the final settlement amount to creditors,” he said.
