KCB Restrained From Seizing English Point Marina Over Sh4.8b Debt

NAIROBI, Kenya, Jun, 8 – The Commercial and Tax Division of the High Court has issued an order restraining the Kenya Commercial Bank from seizing the English Point Marina Hotel over a Sh4.8 billion debt.

Justice Dorah Chepkwony ordered the bank against appointing a receiver-manager, administrator or exercising its power under the said debt pending the determination of the case.

As part of the order, the bank has also been barred from trespassing the hotel premises, advertising for public auction, or offering it for sale, this is after KCB initially took over English Point Marina following the over a Sh4.8 billion debt and appointed Kamal Anatroy Bhatt as the receiver-manager.

The bank had expressed its intention to sell the property or part of it to settle the debt.

The English Point Marina management through Pearl Beach Hotels which owns the property, moved to court claiming the appointment of the receiver-manager was uncalled off despite efforts by the management to settle the debt.

They further accused the bank of irregularly, unprocedural and illegally appointing a receiver without due notice and with a complete lack of justification under the debenture instruments.

Lawyer Nick Ndeda, said that efforts to settle a surplus charge of Sh893,786,194 amongst other concerns raised by the bank proved futile.

“The loss to the applicant can be avoided if the reasonable alternatives presented by the applicant are considered,” claimed Ndeda in court documents.

KCB however argued that the hotel’s failure to service the debt resulted in difficulties in rendering computation of the loan amortization schedule impossible, further noting that it had failed to establish when the bank would honor its contractual obligations.

Since two of the directors,Nazir Jinnah and Alnoor Kanji, and their families reside in Penthouses D1 and D2 on the premises forming the subject matter of the debenture, the court ruled that they be granted access to the facility. and have now been denied access by the irregularly appointed receiver.