- Mumbai-based ICICI bank and Stanbic bank, two of its lenders have placed Karuturi Limited’s assets for sale to recover the Sh1.6 billion debt.
The once largest Naivasha-based flower farm owned by the Indian businessman, Karuturi had fallen into tough times for some time.
Mumbai-based ICICI bank and Stanbic bank, two of its lenders have placed Karuturi Limited’s assets for sale to recover the Sh1.6 billion debt. The property for sale includes a 70-hectare piece of land with multiple titles. The Banks have advised interested buyers of the assets to deposit 25 per cent of the bid price upfront to bid for the assets. Once the selection process is completed, the unsuccessful bidders will be refunded the amount within seven days.
The notice by the bank stated that the prime farm located on Moi South Lake Road, Naivasha, Kenya used for floriculture is the one offered for sale. sale of the entire facility as one lot is preferred. The notice said that individual parcels of land and or moveable assets also will be welcomed. Some of the assets for sale include greenhouses sitting on 26 hectares of land, grading halls as well as social amenities. Interested bidders have to express interest by December 15, 2022. Well-laid-out irrigation systems, IT equipment, furniture, a tractor and motorcycles are also for sale
ICICI had extended a foreign currency term loan of Sh3.6 billion to Karuturi in two tranches between 2010 and 2011, alongside a working capital demand loan of $11 million (Sh990 million).
Also read;
https://trendsnafrica.com/kenyas-agriculture-export-outlook-continues-to-plunge/
https://trendsnafrica.com/kenyas-export-earnings-from-horticulture-decline/
A year back, Stanbic Bank was allowed by the court to proceed with a piecemeal auction of assets of Karuturi Limited, Rhea Holdings Limited, and Surya Holdings Limited. These properties were used to secure loans amounting to $6,590,000 (Sh805,957,000) advanced by the bank to Karuturi.
