An administrator appointed by Absa and KCB banks has invited creditors to file their claims against troubled Savannah Cement after the company was placed under administration by the two lenders over a Sh10 billion debt.
Mr Harveen Gadhoke invited any party with claims against the cement manufacturer to submit them by next month.
Absa placed Savannah Cement under administration on November 24, last year and appointed Mr Gadhoke as the administrator but the company moved to court and managed to suspend the move.
“Any party having a claim against the company should submit their claim in writing, together with relevant supporting documentation and a proof of debt form, to the administrator on or before 25 August 2023 for consideration,” the notice read.
Mr Gadhoke said in the notice that the directors of the company no longer have any power or authority to deal with the affairs, business and property of the firm.
The company had challenged the appointment of the administrator in May following another ruling allowing the two lenders to recover their debts but the case was dismissed last week by Justice Alfred Mabeya.
The judge said despite warding off attempts by the lender to recover its debts, the company has made no attempts to improve its financial status, for more than a year.
The court was also informed that there were changes in ownership and management of Savannah and the new team was committed to settling the secured creditors.
The judge, however, said the mandate of administration is to keep the company as a going concern and upon examining the allegations and the steps taken by the administrator, there is nothing to show that he had the intention of closing down the company.
“If any had been made of course, the negotiations the applicants wished to undertake would have borne fruits,” he said.
