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Akamba creditor seeks court order to appoint receivers
Akamba’s 50 buses are grounded and it owes its 580 workers Sh5.7 million salary arrears. Photo/File
A creditor is seeking orders from court to appoint receivers to run troubled public transport operator Akamba, which has halted operation on mounting debts.
Treadsetters Tyres Limited which is owed nearly Sh40 million for tyre supplies and servicing is calling on other creditors including KCB and Diamond Trust Bank (DTB) to join it to have the company run by their appointed executives.
Akamba’s fortunes have been adversely affected by endless boardroom and soured relations with creditors, which culminated in the withdrawal of its buses from all routes last month.
“Notice is given that a petition for the winding-up of the above company (Akamba Public Road Services),” read a notice in the latest Kenya Gazette, saying the petition will be heard in the High Court on June 26.
“...any creditor or contributor of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of the hearing in person or by his advocate for that purpose,” added the notice signed by Mwaniki Gachoka & Company—which is holding brief for the tyre firm.
The winding up threat comes as directors of Akamba Bus Company have started plans to sell part of their property to settle debts and finance a turnaround.
This emerged at the firm’s extraordinary meeting held on May 21 between company directors — chairman Karim Nathoo and director Boaz Nathoo —and main shareholders Peter Kamba, Martin Malinda, Richard Mangeli and Kioko Musau.
“We hope to raise enough money to offset at least 50 per cent of our debt burden then negotiate with our creditors on a time frame to clear the remaining amount,” Mr Kamba told our sister publication Daily Nation last Tuesday.
Lenders KCB Group and DTB Group are owed Sh300 million by the bus firm. KCB had given notice of its intention to auction the company’s property to recover it debt and Treadsetters Tyres has moved to court in a bid to recover its debt should Akamba be sold.
“We want a receiver manager to be appointed to either rescue the firm or sell it assets to pay the secured creditors and my client,” said Raphael Gachoka, a partner at law firm Mwaniki Gachoka & Company.
Presently, the company’s 50 buses are grounded and it owes its 580 workers Sh5.7 million unpaid salaries—which it says it will settle once it reaches a deal with creditors.
The employees have also moved to court over the unpaid salary arrears.
