Uchumi’s delayed CVA plan leaves creditors guessing
By Herald Aloo, June 1, 2022
Uchumi Supermarkets Plc is yet to commence implementation of Company Voluntary Agreement (CVA) two years after receiving high court backing.
The delay has left stakeholders and creditors guessing the viability of the much-anticipated recovery efforts. In a report seen by Business Hub, Mazars Consulting Ltd, the legally appointed insolvency practitioner partner charged with implementation of the CVA, told the creditors that lack of working capital from the sale of Uchumi’s prime assets has exacerbated the delays.
“The company has not yet started the implementation of the CVA…. discussions have still been held with the relevant stakeholders for the release of funds from the sale and acquisition of the various properties of Uchumi Supermarket Plc and pending proceedings on the ownership status,” Owen Koimburi, Insolvency practitioner said in the report released yesterday.
Prime assets
The financially troubled retailer has been locked in a battle with the Kenya Defence Forces (KDF) over the ownership of a 20-acre piece of land located in Kasarani and another in Langa’ta plot that is awaiting compensation. It is banking on the proceeds of these prime assets in addition to government bailout to turn around its dwindling fortunes and offset over Sh4.2 billion owed to suppliers.
“Uchumi has legal title deeds, and hopefully within this year we should have concluded the matter,” said Uchumi CEO, Mohamed Ahmed Mohamed.