Win for broke firms creditors

Pedestrains walk past the closed doors of Nakumatt City Hall branch in May last year. The retailer owes suppliers close to Sh36 billion. [File, Standard]

Proof of financial distress is now enough for suppliers to force liquidation of a company that has been put under administration.

This is after an amendment was made on the Insolvency Act, giving specific conditions under which a moratorium against liquidation for a company under administration can be lifted.