Diamond Trust Bank has called on the court-appointed administrator, Peter Kahi, to come up with a revised recovery plan agreeable to all creditors, especially suppliers.
Mr Kahi’s initial plan to convert part of Sh35.8 billion debt into equity was rejected by suppliers on March 14 even before it was subjected to vote.
The administrator’s audit report has valued Nakumatt’s assets at Sh5.2 billion against Sh35.8 billion debt, meaning creditors will lose more than Sh30 billion if the firm is wound up.
Diamond Trust Bank (DTB) #ticker:DTK, the single-largest creditor of Nakumatt, has supported the revival rather than liquidation of the troubled retailer.
Chief executive Nasim Devji on Wednesday called on the court-appointed administrator, Peter Kahi, to come up with a revised recovery plan agreeable to all creditors, especially suppliers.
Mr Kahi’s initial plan to convert part of Sh35.8 billion debt into equity was rejected by suppliers on March 14 even before it was subjected to vote.
Ms Devji suggested most banks – owed more than Sh6.9 billion – support the retailer’s administrative status and efforts to revive the once giant firm, brought down by a poorly executed expansion plan and alleged internal fraud.
“The suppliers have really gone through a hard time and so my hope (and) my vision now is that we will all come together one more time and give the process one more chance. If it doesn’t happen, it is only liquidation, and banks are secured, but nobody else is secured. And so it is going to be a loss (for suppliers),” she said.
“I believe there’s still some hope and it is for us (creditors) to come together and for the administrator to come up with something that everybody sees merit in it.”
The administrator’s audit report has valued Nakumatt’s assets at Sh5.2 billion against Sh35.8 billion debt, meaning creditors will lose more than Sh30 billion if the firm is wound up.
DTB is owed Sh3.65 billion, KCB #ticker:KCB (Sh1.7 billion), StanChart #ticker:SCBK (Sh805.1 million), Bank of Africa (Sh328.4 million), United Bank of Africa (Sh126.2 million) and GT Bank (Sh104.8 million).
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