Uchumi gets court relief from eviction
SEE ALSO :Relief for Nakumatt in leased items row"An injunction is hereby granted against any eviction or the interference of the quiet enjoyment of Uchumi Supermarkets at all and any of the premises it occupies pursuant to a lease, tenancy agreement, license and, or controlled tenancy pending hearing and determination of this petition or further orders of the court," she said in the ruling. Though Uchumi has just a handful of outlets left, the ruling will give it breathing space as many of its landlords have in the past tried to evict the retailer due to rent arrears. Justice Kasango also stopped UBA Bank from exercising its "statutory power of sale" on the Langata property held as a charge pending the hearing and determination of the petition or further orders of the court. The bank has been seeking to dispose of Uchumi’s land to settle a Sh172 million debt. Uchumi owes suppliers more than Sh3.6 billion and lenders another Sh3 billion. The retailer has previously made attempts to dig itself out of the debt hole, including proposals to creditors to convert their debt to equity as well as pleas for a Government bailout that was not successful.
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