Receivers now allowed to run Karuturi flower firm
By John Muthoni | February 14th 2014
By John Muthoni
Kenya: The receivers appointed by CFC Bank can now manage the troubled Karuturi Limited, two days after the court barred them from taking over the flower firm.
The court reversed its orders after it was informed that Karuruti did not disclose that the firm and CFC Bank had entered into an agreement that if it failed to pay, the bank would appoint a receiver.
High Court Judge Justice Francis Gikonyo, who had made the orders, reversed the same after the counsel for the bank Paul Ogunde and the counsel for the receivers Michi Kirimi narrated the events that followed after he made the orders.
The court heard that the company was in financial distress and could not manage to pay the employees, prompting them to boycott work and paralyse the operations of the company by barring all roads leading to it.
The two lawyers said the move by Patrick Kiprop, who is representing the flower firm, was an abuse of the court as he sought the order without fully disclosing the agreement and the situation between the two parties.
“As a bank we were out there hearing issues happening. We acknowledge the fact that there were chaos and lack of pay to both the employees and us who lent them the money,” said Ogunde.
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