A High Court in Nairobi has extended orders barring home appliances and electronic dealer, Hotpoint from winding up the troubled retailer giant, Tuskys over its Kshs 248 million debt.
Justice Francis Tuiyott allowed the two parties to continue engaging in an out of court settlement. Earlier, Tuskys and Hotpoint had been granted 45 days negotiated period but they are yet to reach a deal.
The parties suggested they would need more time to settle the dispute as Tuskys continues looking for private equity funds to settle its huge amount of debt with suppliers.
Hotpoint rushed to court seeking to wind up the consumer cyclical firm arguing that it was unable to settle its debt.
“The petitioner imports the goods sold to the company. As result, the failure to pay for the goods promptly, the petitioner is suffering losses,” submitted Hotpoint adding that the debt should be settled plus interest.
Hotpoint supplies the retailer with refrigerators, water dispensers, cookers, TVs, coolers, and microwaves.
“The petitioner has made repeated requests and demands to the company for the payment of the debt, but the company has failed, refused and neglected to pay the debt,” reads part of the petition.
The petitioner had requested the court to appoint Kolluri Subbarya Kamsastry as the liquidator.
Further, Tuskys had been furnished with new orders on freezing its accounts over a debt of Shs 34.5 million by Diamond Trust Bank.
In its response, the company’s lawyer Mr. Ogola revealed that the retailer had secured Kshs 2.1 billion from a Mauritian firm and on September 18, the foreign investor had released an amount of Shs 500 million as a commitment towards the recovery of the retail giant.