Court extends order halting dissolution of Tuskys

 

Tuskys supermarkets Tuesday got a reprieve after a judge extended an order stopping its winding up over a Sh248 million debt. 

High Court judge Francis Tuiyott allowed the supermarket and Hotpoint to continue negotiating and settle the case. 

The initial liquidation case was filed by Hotpoint after the supermarket failed to pay its debt. 

Hotpoint had supplied the supermarket with cookers, microwaves, TVs and fridges among other things. 

It said the supermarket failed to pay up despite repeated request for money due, leaving the company no option other than suing.

Hotpoint in its suit papers asked the court to appoint Kolluri Venkata Kamasastry as liquidator.

A security company Syndicate Agencies is also seeking to wind up Tuskys over a Sh30 million debt.

Also before the court is another case by Tuskys wanting to stop the attachment of its properties. 

It filed the case following apprehension that auctioneers will seize its stock held at a godown.

According to the supermarket, the godown has its stock and selling them would jeopardise its attempts to bounce back.

The court was told that the supermarket had obtained some Sh2 billion funding from a firm in Mauritania, part of which was used to settle rent arrears and pay some suppliers.