Biscuits manufacturer Britania Foods is set to be auctioned over a Sh. 1.3 billion debt it has failed to pay the Diamond Trust Bank and multiple other creditors.
This comes weeks after the manufacturer was placed under administration over the debt. The manufacturer owes Britania 900 million. It also owes Uzuri Foods Sh. 17.3 million with the principal debt owed at Sh. 14 million, while Sh. 3.3 million in interest has accumulated over two years. Uzuri, which has been supplying Britania has also filed an insolvency suit.
Diamond Trust Bank had appointed Peter Kahi of PKF consulting to take charge of the firm. ”With the appointment, the powers of the administrator extend to all assets and undertaking of the company,” the lender said in a notice.
Govt says Kenyans in Afghanistan to be evacuated by their employers
Britania has been arguing that retailers Nakumatt and Tuskys collapsed while owing it more than Sh. 50 million. It has also blamed the closure of schools and hotels in 2020 for its heavy losses and inability to pay off debts. “Britania owes over Sh. 400 million to its suppliers and we will be trying to revive the business and repay the debts. It may not have other bank creditors,” said Mr. Kahi. “None of the directors, shareholders, employees and no other person is authorized to transact any business on behalf of the company without express consent from the administrator. Creditors of the company are required to send full particulars of any claims that they may have against the company to the undersigned on or before September 3, 2021.”
Shock as thousands of 2020 KCSE candidates reject universities, colleges
Under the Kenyan law, a creditor is allowed to issue a 21-day statutory notice to a company or individual that is unable to pay its debts for any reason. The document serves as an ultimatum to repay the debt claimed or agree to a payment plan with the creditor. Britania has been in operation for 34 years. In 2016, it was acquired by local private equity firm, Catalyst Principle Partners.