Karuturi Global, which was once Kenya's largest exporter of cut-roses, might just be pulled out of its current misery by Singapore-based Phoenix Group. The group's investment in Karuturi will help them repay debt and revive operations at their Naivasha based farm.
Early this month, the Kenyan High Court in allowed Stanbic Bank to auction Karuturi’s assets should its owners fail to settle the debt within 90 days.
Karuturi Global’s CEO, Ram Karuturi was quoted saying the new arrangement will help it settle the debt as directed by the High Court.
The judge had in his ruling observed that the owners — Surya Holdings Limited and RHEA Holdings Limited — had admitted the pre-receivership debt and the post-receiver debt had been assessed by an audit firm selected by the owners themselves.
The CEO said the company will re-employ ex-employees and re-establish all social benefits.
"The investment is timely," Phoenix Group Executive Chairman Gaurav Dhawan said, adding that the company is keen to contribute to the revival of Karuturi.
"We are excited to contribute to the revival of Karuturi thereby enabling 2,200 strong workforce of largely women and youth to come back to work. We only await certain clarifications from the court to initiate the process," Dhawan said.
Karuturi Ltd, had been put under receivership in 2014 after failing to service a Ksh383 million loan from CfC Stanbic bank.