A Kenyan High Court has allowed CfC Stanbic Bank to auction the assets of defunct flower farm Karuturi Limited if they fail to pay them nearly 15 million euros in debts within the next 3 months.
The court’s decision by Justice Francis Tuiyott might just be the final blow for Karuturi which once stood as one of the largest flower exporters in the continent. The judge ruled that a three-year old court order restraining the bank from auctioning the properties of the flower farm stands vacated after the lapse of 3 months.
The judge observed that the owners, Surya Holdings Limited and RHEA Holdings Limited, have admitted the pre-receivership debt and the post-receiver debt has been assessed by audit firm selected by the owners themselves.
The judge directed the firm to settle Sh410 million pre-receivership loan in 60 days. He further directed the owners to settle Sh640 million the company owes creditors other than the bank and Sh680 million advanced to the firm by the bank after it was placed under receivership.