The main entrance to Mumias Sugar Company.[Benjamin Sakwa,Standard] The fight for Mumias Sugar Company Ltd’s (MSCL) assets worth billions of shillings has taken a new twist after some creditors opposed the plan to lease the miller.
The creditors also disowned the receiver-manager Ramana Rao. The miller is currently under receivership. In a statement yesterday, the creditors said plans to put the property up for lease were illegal and against existing court orders restraining the disposal of the defunct miller’s assets.
“It has come to the attention of the creditors that an advertisement for leasing and operating of the assets belonging to Mumias Sugar Company Ltd has been published inviting bids from the general public for the disposal by lease of specified assets of MSCL,” said the creditors in a statement. READ MORE
“Take notice that the said Tact Consultancy Services is a stranger to the insolvency proceedings mentioned herein and do not hold the mandate of the court nor any creditors or lenders to dispose of any assets of MSCL whatsoever – either by an outright sale or tenured lease,” read the statement.
Earlier this week, Tact Consultancy Services invited bids from interested investors to lease the company’s assets that include the nucleus estate, sugar factory, ethanol plant, electricity co-generation plant, residential estate, guest house, clubhouse and a golf course.
“With a view to inject a new lease of life and to facilitate the turnaround of the miller to profitability through modernisation and efficient management, the receiver wishes to invite the investors who are interested in the leasing of all or any of the above facilities for a mutually acceptable period at an agreed monthly lease rent,” stated the notice by Tact Consultancy.
The advertisement was the second attempt in as many months by the receiver-manager from Tact Consultancy to seek an investor to commit the billions of cash needed to restore the fortunes of the sugar miller.
In June this year, Devki Group of Companies withdrew a bid to lease the miller for 20 years after a section of farmers and local politicians opposed the lease given under a private treaty.
“I had bid as the Devki Group of companies for Mumias and with the good intention to ensure that we revive the sector and bring back its livelihood,” Devki Group chair Narendra Raval told the media in June this year.
“There is no other intention and we follow due process. I was supposed to lease […]