File Photo of an Uchumi Supermarket outlet. The write off follows the lenders acceptance of the retailer’s company voluntary agreement (CVA) which seeks to restructure the company’s debt into the medium term in a means to relieve pressure off Uchumi’s hard pressing repayment obligations.
KCB which is Uchumi’s largest creditor is expected to receive a final and full payment of the outstanding sum of Ksh.900 million on a quarterly basis to June 2024.
Meanwhile, Cooperative bank has offered a 40 percent waiver of its total outstanding loan facility including both principal and accrued interest to represent a Ksh.109.1 million write off.
KCB and Cooperative bank have agreed in principle to write off a combined Ksh.655.5 million in outstanding credit to the debt-strapped Uchumi Supermarkets.
The write off follows the lenders acceptance of the retailer’s company voluntary agreement (CVA) which seeks to restructure the company’s debt into the medium term in a means to relieve pressure off Uchumi’s hard pressing repayment obligations.
On its part, KCB which was first to take up the CVA has agreed to a waiver off all accrued interests and penalties an equivalent Ksh.365.6 million while offering a 44 percent discount on its lease facility to represent a write off of a further Ksh.180.9 million.
KCB which is Uchumi’s largest creditor is expected to receive a final and full payment of the outstanding sum of Ksh.900 million on a quarterly basis to June 2024.
Meanwhile, Cooperative bank has offered a 40 percent waiver of its total outstanding loan facility including both principal and accrued interest to represent a Ksh.109.1 million write off.
The bank however expects an immediate settlement of 10 percent of the outstanding Ksh.163.6 million after write-off, on or before the 28 of February 2020 as per a sworn affidavit filed in High Court’s commercial and tax division and seen by Citizen Digital .
Uchumi which was granted a further 30-days to engage its remaining secured creditors on November 7 including the United Bank of Africa (UBA) and the government has reached a further settlement deal with the Industrial and Commercial Development Corporation (ICDC).
According to court filings, the corporation has agreed to restructure repayments for its outstanding Ksh.112.8 million loan across seven years while opting in on a standstill agreement for the settlement of the principal Ksh.84.8 million.Further, the ICDC has tasked Uchumi with the provisioning of regular reviews to its cash-flow projection based on the retailer’s ongoing performance.Nevertheless, the […]
