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Karuturi flower firm based in Naivasha sued Stanbic Bank and four party managers for thwarting its revival by mismanagement and secret acquisition of loans
This decision comes as a twist of the four-year battle to expel the statutory frameworks. . The firm claims that the managers secretly guaranteed 12.9 billion shillings.
The firm claims that Stanbic secretly advanced a loan of 673 million shillings to the company to bring its total debt to 1.6 billion Sh.
receivership on 10 February 2014 on a loan not reimbursed 601 million shillings.
Kieran Day and Ian Small were appointed to manage the affairs of Karuturi until October 2015, when they were replaced by Kuria Muchiru and Muniu Thoiti of PriceWaterhouseCoopers
In June 2014 , Indian bank ICICI appointed Lolluri Kamasastry as co-manager to help recover a loan of 4 billion shillings
A year later, High Court Judge Francis Gikonyo withdrew Kamasatry from Karuturi. business, saying ICICI had violated the loan agreement.
Gikonyo said ICICI failed to advance Sh 2.5 billion to Karuturi. Karuturi still owes Shillings 3.2 billion to creditors
In January of this year, the cabinet asked High Court Judge Francis Tuiyott to change his lawsuit against Stanbic. 19659002] The amendment led to the inclusion of mismanagement and sabotage as claims against the receptions managers.
Surya Holdings, Rhea Holdings and Karuturi Limited, who own the flourishing farm, enjoined party managers Kieran Day, Ian Small, Kuria Muchiru and Muniu Thoiti in costume
Karuturi wants managers to be held accountable for his misfortunes
"By December 31, 2016, Stanbic allegedly, with the complicity of Small, Day, Muchiru and Thoiti, diverted more than 1 billion shillings on the pretext of recovering an alleged debt of 400 million shillings. The misappropriated sum was improperly recorded as a debt owed by Karuturi Limited, "Karuturi says in the modified suit."
"In a new attempt to repurchase securities, the company approached two banks that were ready to take over Stanbic's loan. But the banks withdrew due to the lack of good will of Stanbic, Small, Day, Muchiru and Thoiti. "
Karuturi wants Stanbic unconditionally hand over the business to the owners and clears the loan amount requested by the lender before
The owners claim that the company's defeat is a collusion between Stanbic, politicians and well-connected businessmen who want to acquire their badets.
They accuse Stanbic's escrow managers of invading his farms, failing to harvest in time and giving order 2,200 employees not to go to work.
Karuturi says the actions and inactions of the managers have resulted in a loss of Sh 11.5 million per day since the receivership.
He asks Stanbic to pay 8.74 billion shillings in compensation for losses incurred between 10 February 2014 and 6 May 2016, the date of the last flower harvest.
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