The administrators of 14 Riverside Building where Dusit D2 Hotel sits have obtained a court order blocking a creditor from interfering with the management of the property, pending determination of a petition they have filed.
High Court judge Josephine Mong’are prohibited Synergy Industrial Credit- who seek to sell the property to recover Sh5.5 billion arising from a botched deal- and its agents from interfering with the management of the property, pending the hearing of the case on October 2.
Mr PVR Rao, one of the administrators of Cape Holdings, moved to court stating that Synergy had threatened to sell the entire building, yet it has interests in several blocks.
Through senior counsel Allen Gichuhi, Cape Holdings said Synergy had illegally threatened to interfere with the management of the property by purporting to take over the suit premises without a court order and while various applications are pending determination in court.
Synergy allegedly made the move after the Court of Appeal dismissed an application by I&M Bank last month.
“I verily believe that both the Court of Appeal and the High Court recognised that the debentures could not extend to Synergy’s specific interests. I am advised that the courts did not declare any illegality over the rest of the suit premises that were wholly financed by bank loans,” Mr Rao said.
Mr Rao revealed that the administration will expire in March 2025 and the court’s permission will be required to sell the property to settle all lawful debts.
Mr Rao said there is no order lifting Cape Holdings from administration and the company has several pending cases, among them one seeking to sell the entire property with plans to settle the claims of all creditors and the taking of accounts.
Mr Gichuhi said while dismissing an appeal by I&M Bank last month, the Court of Appeal held that Synergy had a caveat over the property and a prohibitory order dated September 1, 2011.
