Kenya

Debt-laden Multiple Hauliers in talks with lenders

Debt-laden Multiple Hauliers in talks with lenders

Troubled Multiple Hauliers is negotiating with NCBA Bank and Synergy Industrial Credit – two lenders that were pushing for the logistics firm’s liquidation over defaulted loans – as it seeks a payment plan for debts of over Sh770 million.

Justice Wilfrida Okwany has adjourned two cases filed by the two lenders to October 28, when the parties expect to formally file a deal that will see them withdraw their insolvency petitions.

Synergy Credit filed its petition in March 2020 seeking to have Multiple Hauliers liquidated over a Sh532 million debt.

In April, NCBA followed suit and filed a fresh insolvency petition against the logistics firm, which had failed to service a Sh245 million loan.

The two cases have attracted the interest of at least 15 creditors, who are claiming more than Sh14 billion from Multiple Hauliers.

On Wednesday, Multiple Hauliers told Justice Okwany that negotiations with NCBA and Synergy Credit had been smooth, and that a deal will have been struck in two weeks.

The court action has seen more lenders reveal that they are among several creditors owed Sh14 billion.

KCB Bank and Co-operative Bank joined the insolvency petitions as creditors, meaning they also have claims against the trucking firm.

Insolvency petitions

I&M Bank and Prime Bank are also among the creditors.

Mortgage lender Housing Finance earlier this year sold 30 heavy-duty vehicles owned by Multiple Hauliers to recover a Sh2.1 billion loan.

NCBA in June appointed seasoned Ernst & Young managers Anthony Makenzi Muthusi and Julius Mumo Ngonga to take over Multiple Hauliers’ affairs after placing the company under administration.

But Multiple Hauliers obtained court orders suspending the administration.

The firm’s failed bid to borrow Sh14.8 billion in 2017 left it unable to pay many of its debts, which spiralled into the two insolvency petitions.

Some of the institutions and individuals owed money are Mumbua Mutuku, Laura Jean Sylvester, Galana Oil Kenya, Barbara Jane Belcher, Dry Associates, Andrew Ian Moore Gordon, Victoria Wambui Kagunya, Robert James Scott Gordon, Zahra Mohamed Haji Gordon and Margarethe Gordon.

Others are the National Social Security Fund (NSSF), Weldcut Africa Ltd, and Hardev Kaur Dhanoa.