On October 21, Justice Francis Tuiyott, sitting at the commercial and admiralty division of the High Court, Nairobi, issued orders of stay against attachment, sequestration, distress, or execution against the property of Tusker Mattresses Limited.
On Tuesday (October 27), the orders were extended to November 17, with the court directing that Tuskys engages its creditors.
“As part of its turnaround strategy and following the extension of a judicial reprieve against mounting creditors action by Justice Francis Tuiyott last Tuesday, the firm has lined up meetings with its staff unions, suppliers, landlords among other stakeholders,” Chairman Bernard Kahianyu notes in a statement.
He said the creditor meetings would provide an engagement platform to update all stakeholders on the business recovery plan.
The plan, which has been submitted at the High Court, Kahianyu said had been developed by the firm’s management team in conjunction with the transaction advisory firm consulting for the retailer in the capital raising exercise.
The first phase of the plan is anchored on a Sh2billion credit facility provided by the firm’s structured debt fund partner ahead of further equity investments to shore up the firm’s capital position.
The retailer, he confirmed had been forced to seek judicial protection following a spike in the number of legal actions facing the firm in various courts across the country.
“The court orders undoubtedly have provided much-needed relief, and we are glad that this also provides a platform for us to advance stakeholder consultations including the tabling of our business revival and a debt settlement plan with all our stakeholders commencing next week,” Kahianyu said.
He assured that the firm remains committed to meeting its part of the bargain by settling all amounts due to its creditors.
