Kaluworks Limited, a company associated with business mogul Manu Chandaria has been placed under receivership over a Ksh4.3 billion debt.
The company was placed under receivership by NCBA Bank, which is owed the money, in a bid to turn around things, or in the worst scenario, protect the company’s assets.
Kaluworks specialises in the manufacture of aluminum utensils and roofing sheets has been recording poor sales due to increased competition from new manufacturers.
Pongapipalli Rao will now be the receiver manager of the firm, even as financial firms rush to auction Kaluworks assets over ballooning debt.
Among the lenders eying Kaluworks’ assets include I&M Bank, with debts running into billions.
“Notice is given that the above company (Kaluworks) was placed under administration on May 27, 2021 by the holder of a qualifying floating charge,” Mr Rao announced on Friday.
Kaluworks is a subsidiary of Clovis Company Limited which is registered in Bermuda and owned by Comcraft Group, where Chandaria is the chairman and majority shareholder.
Comcraft Group is present in over 40 countries and was worth over Ksh215.6 billion as of 2011, according to the Forbes Magazine. In the same year, Manu Chandaria was also named among the wealthiest men in Africa.