Petition for winding up of Mumias Sugar presented to court; losses had rendered it insolvent

Mumias Sugar Company
Mumias Sugar Company

A petition for the winding up of Mumias Sugar Company has been presented to the High Court by Kimeto and Associates Advocates, and is set to be heard before the Court sitting on 30th May 2019 at 9:00 am at the Milimani Law Courts. “And the said petition is directed to be heard before the court sitting at 9.00 am on the 30th day of May 2019 and any creditor or contributory of the said company desirous to support or oppose the making of an order on the said Petition may appear at the time iof the hearing in person, or by his advocate, for that purpose,” read the notice published on a daily news paper.

This comes days after Mumias Sugar Company became technically insolvent after incurring further losses that has led to total liabilities trumping total assets. In financial results released last month, the losses in the year ending June 2018 rose to Kshs 15.1 billion for a previous Kshs 6.8 billion, while the total assets as of June 2018 stood at Kshs 15.7 billion against a total liability of Kshs 21.6 billion. The losses have been blamed on a shortage of cane and impairment charges to the plant and machinery to Kshs 4.9 billion form Kshs 2.6 billion. Cane delivered to the miller dropped from 417,347 tonnes to 283,435 tonnes, a 32 percent drop.

The aforementioned [petition may be obtained form the Court registry or will be furnished to any proven creditor or contributor of the said company requiring a copy.