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Britania under administration after default on sh1.3 billion loan


Companies

Britania under administration after default on sh1.3 billion loan


DTB agency in Nakuru. PHOTO FILE | NMG

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Summary

  • Britania Foods, the cookie maker, has been placed into receivership after defaulting on loans of over 1.3 billion shillings from DTB and other creditors.
  • Peter Kahi of PKF Consulting has been appointed director of the company by DTB which owes Sh 900 million from the manufacturer.

Britania Foods, the cookie maker, has been placed into receivership after defaulting on loans of over 1.3 billion shillings from DTB and other creditors.

Peter Kahi of PKF Consulting has been appointed director of the company by DTB which owes Sh 900 million from the manufacturer.

The appointment comes at a time when the cookie maker is battling an insolvency claim filed by one of its suppliers, Uzuri Foods, claiming 17.3 million shillings.

Britania was among the country’s leading cookie brands, but was hit hard by falling demand for its main distribution system of schools, hotels, restaurants and supermarkets. Its factory ceased operations in October of last year.

The administration comes as the cookie maker battles an insolvency claim filed by one of its suppliers, Uzuri Foods, claiming 17.3 million shillings.

“The administrative appointment was chosen by DTB Bank for its outstanding debt of over 900 million shillings. Britania owes more than 400 million shillings to its suppliers and we will try to revive the business and pay off the debts. may not have other bank creditors, ”Mr. Kahi said.

Last month, Uzuri Foods limited, which supplied flour to Britania, filed for insolvency over a debt of 17.3 million shillings for deliveries made between March and August 2019.

Uzuri wanted the High Court to appoint Kolluri Venkata Subbaraya as liquidator and give him the power to sell the manufacturer’s assets to collect the debt.

Britania has argued that retail giants Nakumatt and Tuskys collapsed as they owed her more than 50 million shillings, and that the Covid-19 pandemic has harmed its largest customer base – the schools and hotels.

In December 2016, Britania received an undisclosed capital injection from UK development finance institution CDC through its Nairobi-based private equity fund manager, Catalyst Principal Partners.

The capital was to be spent on modernizing the Britania plant, innovating new products and diversifying its offering in the rapidly changing consumer goods market.

“None of the directors, shareholders, employees and no other person is authorized to transact on behalf of the company without the express consent of the director,” added Mr. Kahi.

“The creditors of the company are required to send the undersigned full details of any claims they may have against the company to the undersigned no later than September 3, 2021.”


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