· Former Nakumatt CEO Atul Shah allegedly used the same property to borrow from multiple lenders that left some banks holding onto non-existent security
· Bank of Africa won the claim to the Sh2 billion worth of personal property of Mr Shaw in court and will auction the asset to recover Sh700 million advanced
Former Nakumatt CEO Atul Shah allegedly used the same property to borrow from multiple lenders that left some banks holding onto non-existent security. Meanwhile Bank of Africa won the claim to the Sh2 billion worth of personal property of Mr Shaw in court and will auction the asset to recover Sh700 million advanced to the collapsed retailer. The Bank of Africa is the first to seize assets linked to Mr Shah after the creditors vowed to attach assets owned by him and his family to recover billions of shillings of loans given to Nakumatt.
But evidence produced before High Court judge indicated that the property is also charged to other banks and all other creditors stand a chance of losing their security. The banks offered Nakumatt billions of shillings on the strength of the retail chain’s cash flow.
After accumulating debts estimated at Sh30 billion, Nakumatt closed shop in January. It owed Sh18 billion to suppliers, Sh4 billion to commercial paper holders and the rest to banks. The banks have been more aggressive in recovering their unpaid loans, targeting the assets of Mr Shaw and his family valued at Sh3.68 billion .
