Nakumatt administrator Peter Kahi takes on biscuit-maker Britania

Troubled biscuit-maker Britania has ben hit with yet another setback after it was placed under administration over a Sh17.3 million debt.

The sum is owed to food manufacturer Uzuri Foods Ltd.

According to a notice issued by PKF Consulting Ltd on August 17, the company has appointed Mr Peter Kahi as Britania’s administrator.  

This follows an insolvency case that has been ongoing before the High Court since December last year.

"With the appointment, the powers of the Administrator extend to all assets and undertaking of the company. By virtue of the Administration, the powers of the directors of the company in terms of dealing with the company’s assets have ceased," the notice said.

“None of the directors, shareholders, employees and no other person is authorised to transact any business on behalf of the company without express written consent from the Administrator,” it added.

Uzuri Foods filed the insolvency petition against Britania before the High Court on December 15, 2020, after the latter failed to pay for flour supplied between March and August 2019.

The biscuit-maker admitted before court that it owed Uzuri Foods the money - a principal debt of Sh14 million and Sh3.3 million interest - indicating that it intended to employ a recovery strategy that would attract funding. The company had taken a hit from the Covid-19 pandemic, as well as reeling from a Sh50 million debt it says went down with collapsed Nakumatt and Tuskys supermarkets.

But Uzuri Foods told court it had issued statutory notices to Britania on two occasions, July 8, 2020 and September 4, 2020, after the latter failed to settle the debt in the agreed time, both of which were unfruitful. 

A statutory notice is a 21-day ultimatum issued to a person or business that is unable to pay debts, asking them to repay or commit to a payment plan with the creditor, after which the creditor can file for insolvency if they have not settled the debt.