Transport

Buzeki firm sues to stop auction of trucks

port

Mombasa port. FILE PHOTO | NMG

An East African transport and logistics company with over 130 trucks has sued an institution dealing in asset financing for serving it with a proclamation notice through auctioneers against its entire fleet in alleged default of credit facilities.

Buzeki Enterprises Ltd which says it does not deny having credit facilities with Synergy Industrial Credit Ltd says the action of the financial institution amount to winding it up through the backdoor.

“The Proclamation fails to reflect an estimated forced of value of the trucks and trailers sought to be seized,” reads part of the suit documents.

The transport company says it has always been a client of Synergy Industrial Credit Ltd from whom it obtained credit facilities for the purchase of assets including trucks and land.

Buzeki Enterprises Ltd further argues that the defendant’s actions in causing proclamation of its fleet of vehicle while aware that the proclaimed assets (trucks) constitute its tools of trade are actuated by malice.

“The proclamation is a kiss of death to the plaintiff’s business which is otherwise a going concern capable of meeting its business obligations and which is an employer of about 1000 families across Kenya and the East Africa Ltd,” Buzeki Enterprises Ltd further argues.

It argues that it has suffered major cash flow deficiencies which resulted in major restructuring of its business and its credit facilities to enable it weather the prevailing difficult business season.

According to the company (Buzeki Enterprises Ltd), it has suffered unmitigated loss and damage which has occasioned its current state of affairs.

The plaintiff’s further said that though it may be limping in terms of meeting its obligations to Synergy Industrial Credit Ltd, it has a chance should the clogs on redemption of its assets (trucks) are removed.

The transport company says it is unfair for the asset financing company to effectively liquidate its business through the threatened execution process yet it has recourse to other securities which it holds as collateral for credit facilities.

The transport company is seeking a declaration that its trucks and trailers used in its transport and logistics business constitute its tools of trade.

It is also seeking a permanent injunction restraining Synergy Industrial Credit Ltd from attaching or advertising for sale and interfering with its ownership of all trucks it belongs.

The transport company also wants the defendant to provide properly reconciled accounts of its credit facilities and remove all amounts levied unlawfully.

An application by Buzeki Enterprises Ltd has been fixed for hearing today (Wednesday).