Tuskys building Auctioning: Equity Bank has kicked off auctioning of troubled Tuskys Supermarket assets over a multi-million debt. This is after Tuskys failed in its bid to petition a commercial court to stop the auction.
The bank will auction a five-storey commercial building owned by Tuskys over a Sh. 650 million debt.
This building houses Tusky’s largest store. It is located at the junction of Tom Mboya Road and Accra Road in Nairobi.
According to the terms of the sale, a deposit of 25 percent of the total amount must be paid at the fall of the hammer or immediately after the acceptance of the bid in cash or a banker’s cheque and balance paid in 90 days to Equity Bank.
The troubled supermarket is estimated to own assets worth some Sh. 6.67 billion. Tuskys however owes creditors Sh. 19.6 billion.
Astonishingly, the assets owned by Tuskys can only cover payments of Sh. 6.67 billion of the debts which is equivalent to 34 percent of the money owed to unsecured creditors.
This huge amount has placed it at nearly ten times the Sh. 2.1 billion the retailer is seeking from a strategic investor.
Fallen Tuskys Supermarket owes its creditors Sh. 19.6 billion
However, it is not clear if the retailer has managed to secure an investor or the claim of finding an investor has been part of an elaborate public relations plan.
In early December, Tuskys was given up to Christmas day to reveal the identity of the mystery offshore investor seeking to buy it out or have it wound up.