Not so rosy future as Karuturi folded up

By ALLAN ODHIAMBO, aodhiambo@ke.nationmedia.com

 

A worker in a flower farm. Karuturi was put under receivership in 2014 after it failed to meet its payments. PHOTO | FILE  

In Summary

Creditors have until May 16 to table their debt claims ahead of the anticipated sale of the Naivasha-based flower exporter.

Kenya’s largest flower firm, Karuturi Limited, is set to be wound up, marking a dark chapter for one of the prominent growers.

Kenya’s largest flower firm, Karuturi Limited, is set to be wound up, marking a dark chapter for one of the country’s largest flower producers. 
Creditors of Karuturi have been given until May 16 to table their debt claims ahead of the anticipated sale of the Naivasha-based flower exporter.
High Court Judge Charles Kariuki on March 30 this year issued winding up orders for the company and on April 6 appointed Muniu Thoithi and Kuria Muchiru as liquidators pending further direction on May 5.
Prove their debts
“The implication of this winding up order is that the company was placed in liquidation from Wednesday March 30, 2016,” the joint liquidators said yesterday.
“Accordingly, creditors of the company are required to prove their debts or claims by completing Proof of Debt form number 61 in prescribed format provided by winding up rules number 81 to 88 and to establish any title they may have under the Companies Act (Cap 486), or, failing which they shall be excluded from the benefit of any distribution made before the debts are proved, or from objecting to any such distributions,” they further said.
The liquidators said the claim forms will be provided at the flower firm’s premises in Naivasha.
Karuturi Limited, owned by an Indian multinational, went under in February 2014 after it faced cash-flow problems and was placed in receivership.
The receiver/managers later offered to put the firm on sale saying the business model was unsustainable. The Bangalore, India-based multinational had opposed a winding-up petition brought by the receiver managers.
However, this changed on March 30 when Karuturi lawyers filed a no-objection motion leaving Justice Kariuki with no option but to order for its sale.