Buzeki faces more trouble as new firm piles pressure
The fate of embattled Buzeki Enterprises, a transport firm owned by politician Bundotich Zedekiah Kiprop has taken a new twist after another creditor, Bhachu Industries, filed an insolvency suit against the company.
Bhachu Industries owned by the Bhachu family sued Buzeki over an undisclosed amount of money and wants the company liquidated.
“Notice is given that a petition of insolvency of Buzeki Enterprises Ltd by the High Court of Kenya at Milimani Law Courts was on October 28, 2020 presented to the said court by Bhachu Entreprises care of Macharia-Mwangi and Kariuki Advocates,” a Gazette Notice reads in a case set to be heard this Thursday.
Buzeki is fending off attacks from banks, clearing and forwarding companies, trailer manufacturers and many others that are fighting to salvage anything they can from his troubled entity.
Logistics company
The entry of Bhachu in the fight for the spoils comes at a time when NCBA Bank and Landmark Port Conveyors Ltd are together seeking to recoup nearly Sh3 billion in total from the troubled logistics company.
“Any other creditor or contributor of the said company desirous to support or oppose the making of an order on the said petition may appear of the hearing,” the notice says.
Buzeki transports almost anything from cement, to minerals such as manganese, petroleum to fertilisers having struck key partnerships with World Food Programme, Bamburi, Athi River Mining, Portland Cement and Unga Limited. It has offices in Mombasa, Eldoret and Nairobi.
It operates tippers, petroleum tankers, low loaders, flat beds, cover body trucks among other vehicles which were procured with credit.
The company owes NCBA some Sh2.7billion, adding to the debt pile that has left creditors fighting for the Mombasa-based company’s trucks and trailers.
The company’s 53 trucks are already attached to Landmark Conveyor’s whose plan to sell them was stopped by the court after NCBA went to court to stop the sell saying it is owed Sh2.7 billion.
NCBA had sought to block Landmark Port Conveyors Ltd from auctioning 53 trucks and trailers belonging to Buzeki over a Sh118 million loan.
The third largest biggest bank reckons that the 53 trucks and trailers are part of the 289 trucks and 141 trailers bought using the Sh2.7 billion loan.
The High Court last year allowed Landmark to auction the vehicles to recover Sh118 million after Buzeki defaulted on a debt repayment agreement signed in November 2018.
NCBA, however, appealed the High Court decision, saying it had a stake in the financing of Buzeki’s 53 trucks and trailers hence their sale by Landmark would dilute the security of the loan owed by the haulage firm.
The bank says it is holding moveable and immoveable properties belonging to Buzeki, including the 53 trucks and trailers, as security.
On the other hand Buzeki agreed to sell prime real estate in Mombasa worth Sh350 million to Landmark Port Conveyors in 2015.
Landmark deposited Sh105 million for one of the properties but Buzeki failed to relinquish the property and instead sought a change of terms. Landmark, however, pulled out and sought to be given its cash back plus interest.
