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{
    "id": 1087015,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1087015/?format=api",
    "text_counter": 34,
    "type": "speech",
    "speaker_name": "Sen. Ndwiga",
    "speaker_title": "",
    "speaker": {
        "id": 278,
        "legal_name": "Peter Njeru Ndwiga",
        "slug": "peter-ndwiga"
    },
    "content": "of transportation of molasses and bagasse from other factories. Further, the Receiver Manager also began development in the Nucleus Estate from marginal revenue derived from the distillery, however, the distillery operations were suspended in March, 2021 following directions from the Ethanol Plant Lenders; c) These developments left the Receiver Manager with only one option of leasing the Company’s assets to revive its operations and progress recovery efforts for the secured creditors and other stakeholders of the Company; d) As per Audited Financial Statements for the FY 2018, the value of the Company’s assets was Kshs15.7 billion while its liabilities were Kshs30.1 billion. The net assets position stood at a negative Kshs14.4 billion, implying that the Company would not be able to meet its long term and short term financial obligations from its assets and was therefore insolvent; e) The Company’s assets may have deteriorated and its liabilities increased from June 2018, owing to additional interest and penalties on loan repayment default, tax arrears etc. The latest book values of assets and liabilities was not able to be availed in the absence of the Statement of Company Affairs from the Company’s directors. However, asset valuation undertaken through Centenary Valuers Ltd. in November, 2019 estimated the market value of the Company’s assets to be Kshs18.4 billion; f) The Receiver Manager would continue to run the affairs of the Company until such a time when the full amount owed to the secured lenders was recovered or until his appointment came to an end for any other reason; g) The decision to lease the Company’s assets was discussed with KCB and the Governor of Kakamega County. Necessary consents were also obtained from the national and county governments, secured lenders and other stakeholders like the Capital Market Authority (CMA), Nairobi Stock Exchange (NSE), the Agriculture and Food Authority (AFA) and the National Treasury; h) The Government could sell its stake by transferring its shares to any other party for payment or any other consideration, however, as per Financial Year 2018 Audited Financial Statements, the shareholder value in the Company stood at Kshs14.4 billion, making it unlikely that any investor would be interested in purchasing a stake in the Company; i) The Receiver Manager opted for private treaty as opposed to public tendering as it is less expensive and much faster. The bidding process began in the first quarter of 2020 and was kept open for a year as the Receiver Manager was keen to obtain the best offer. Eight bidders submitted their bids including- i. Catalysis Group, Russia; ii. Sarrai Group, Uganda; iii. Kruman Associates, France; iv. Kibos Sugar; v. Devki Group; vi. Premier JV, India; vii. Third Gate Capital Management; and viii. Godavari Enterprises India. j) Evaluation of the bids began on 16th April, 2021 using the following criteria- The electronic version of the Senate Hansard Report is for information purposes only.A certified version of this Report can be obtained from the Hansard Editor, Senate."
}