Justice Fred Ochieng ordered Peter Obondo Kahi to be appointed as an administrator.
Consequently, this keeps at bay the landlords who have been queuing to evict Nakumatt from its premises unless allowed by court or by consent of the administrator.
Nakumatt had applied for the appointment of an administrator to be allowed to take over, arguing that suppliers need to be given confidence that their goods cannot be taken away by landlords.
The High Court has given cash-strapped Nakumatt Holdings a lifeline to fight for its recovery after it allowed the appointment of an administrator.
Justice Fred Ochieng ordered Peter Obondo Kahi to be appointed as an administrator under the provisions of Section 563 of the Insolvency Act.
Consequently, this keeps at bay the landlords who have been queuing to evict Nakumatt from its premises, unless allowed by court or by consent of the administrator.
The administrator is expected to, within 60 days of his appointment, ensure a meeting of all Nakumatt creditors is held and address all their concerns.
"Within 7 days of the creditors meeting, the administrator will provide all the known creditors and all the court with his report, together with the minutes of the meeting," reads the ruling.
Nakumatt had applied for the appointment of an administrator to be allowed to run its business under the Insolvency Act, arguing that suppliers need to be given confidence that their goods cannot be taken away by landlords.
The application was opposed by creditors, who argued that no new material offer has been made.
