Anthony Makenzi Muthusi and Julius Mumo Ngonga of Ernst & Young LLP have been appointed as joint administrators of Multiple Hauliers (EA) Limited.
The company, which has been placed under administration for failure to service its debts, is facing multiple liquidation cases amounting to over Ksh14 billion.
“The powers of the Administrators extend to all assets and undertakings of the Company. By virtue of the Administration, the powers of the directors in terms dealing with the Company assets have ceased. The Administrators have total control over the business assets and management affairs of the Company with personal liability,” said Multiple Hauliers in a public statement.
The Administrators will engage all key stakeholders of the company in order work out the best possible outcome for the company. The Administrators shall distribute statement of proposal to every creditor whose claim and address are known and to any member of the company within 60 days.
Among the creditors leading the pack in a liquidation case is Prime Bank, which was owed Ksh807 million as of 2017. Prime Bank had issued Multiple Hauliers with a Ksh300.9 million overdraft and separate loans of Ksh178 million, Ksh269 million and Ksh60 million.
The loans from Prime Bank were tied to two parcels of land in Mombasa and Nairobi owned by the company.
A part from the Prime Bank case, Multiple Hauliers is also facing a Ksh532 million suit by Synergy Industrial Credit, which filed an insolvency suit on March 3, 2020.
Other creditors later joined the insolvency case include Mumbua Mutuku, Laura Jean Sylvester, Galana Oil Kenya, Barbara Jane Belcher, Dry Associates, Andrew Ian Moore Gordon, Victoria Wambui Kagunya, Robert James Scott Gordon and Margarethe Gordon.
The National Social Security Fund (NSSF), Weldcut Africa Ltd, Hardev Kaur Dhanoa and I&M Bank have also joined the case.
On its part, Multiple Hauliers, argues that the Ksh14 billion liabilities are outweighed by its Ksh19 billion asset base, hence liquidation is not necessary.
The company is expected to submit a detailed financial report to Justice David Majanja in September 2021, that will determine whether the insolvency case will go on.
In February 2020, Multiple Hauliers was dealt a blow after the court allowed HFC to auction 30 heavy duty vehicles belonging to Multiple Hauliers over Ksh2.1 billion loan facility.
Multiple Hauliers is owned by three Indians, Rajinder Singh Baryan (current Multiple Hauliers MD), Amrik Singh Heer and Tarlochan Singh Heer.
Two years ago, businessman Mungai Kariuki claimed that he was a part owner of Multiple Hauliers, but he was forced to leave in 1982 by Moi-era police boss Noah Arap Too.