Now Karuturi requests court to end receiver managers’ deal
SEE ALSO :Ex-Karuturi workers hopeful as court rules
However, in 2014 Karuturi claimed CFC Stanbic recalled the credit facility after only disbursing $2.59 million (Sh261.6 million) leading to a crisis at the firm, which could not meet contractual and financial obligations. This, Karuturi says, led to suits by its suppliers and employees. The firm claims that the bank breached the contract and acted with 'malice and in bad faith' by recalling the loan and overdraft facilities at a time when the company had committed heavy financial investments in readiness for a high crop season. According to Karuturi, the receiver managers - Kieran Day, Ian Small, Muniu Thoithi and Kuria Mucheru - who were appointed to take over the operations of the flower farm were not qualified to run the company. Karuturi has asked the court to declare the appointment of Kerian Day and Ian Small as receivers as unlawful and illegal. It further wants the court to permanently restrain CFC Stanbic Bank from liquidating its assets. The firm wants the court to declare that the bank breached its contractual obligations after it declined to disburse the entire loan and overdraft facility.
