DUBAI FIRMS TAKES OVER MUMIAS SUGAR COMPANY

Dubai-based Vartox Resources Inc has joined a case seeking the removal of PVR Rao as the administrator of Mumias Sugar Company in a move that might throw the 20-year leasing of the miller, which was won by Uganda based Sarrai Group, into disarray.

In consent adopted by High Court deputy registrar Stephany Githogori on Wednesday, Vartox Resources joined more than 60 other small creditors in a push to oust Mr Rao as the administrator and his place taken by Mr Harveen Gadhoke of Adili Associates LLP.

The consent will now be placed before Justice Alfred Mabeya, who is hearing the Mumias Sugar dispute to determine the fate of Mr Rao.

Mr Rao was appointed the receiver-manager by KCB Group in 2019 over an unpaid loan of Sh545 million. He was later made the administrator by Justice Mabeya, who directed him to complete the leasing process and report progress to the creditors.

“The following creditors agree to appoint Mr Harveen Kumar Manoharlal Gadhoke of Insolvency license No. OR/IP/006 as Administrator to act on their behalf in this insolvency,” part of the consent presented in court stated.

Mumias Sugar owes creditors Sh29 billion, nearly half of which is claimed by banks and other lenders like Vartox. Farmers, workers and suppliers make up the other half of the miller’s debts.

Other creditors include Kimeto & Associates Advocates who is owed Sh76 million by Mumias for representing the miller in several court cases, Westlink Electrical & Hardware, Milicons, Victoria Furnitures ltd, Stratec Binder GmbH, Liaison Group K ltd, Copy Cat, and Sygenta K.

By Business Daily