Wobbly firms are increasingly finding shelter in insolvency law. But is this just a case of delayed burial rites?
Early adopters of the Insolvency Act 2015 such as construction firm Spencon Kenya Limited, which was placed under administration in 2017, do not look like they are coming back.
Nakumatt Holdings, Midland Energy, ARM Cement and Deacons East Africa, Mumias Sugar, Karuturi Multiple Hauliers and Phoenix Publishers have followed the same path and the list keeps bulging.
Britania Foods, the manufacturer of biscuits, has become the latest firm to be placed under administration after defaulting on loans of more than Sh1.3 billion.
More companies are seeking protection from insolvency law as their operations crumble amid a large de…
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