Galleria Mall says it cannot pay bank loans
The owners of Galleria Mall are back in court seeking to evict cash-strapped retailer Nakumatt, arguing that the supermarket’s presence in the shopping complex is killing its business.
Galleria Mall claims that the Kenya Revenue Authority (KRA) has attached the rental payments from its remaining tenants, making it difficult for it to meet its loan obligations.
Parkside Developments Limited claims that KRA has directed the tenants at the Galleria Mall to pay the rents directly to the taxman over unsettled Sh86 million tax arrears.
Parkside developments say that the move by KRA has depleted its remaining revenue streams, making it difficult for it to service its bank loan.
It wants the court to allow it to take over space currently occupied by the Nakumatt.
“That this honourable court hereby grants leave to the interested creditor to exercise its right of forfeiture and re-enter its premises known as unit 0.1 situated on the ground floor of Galleria mall,” reads one of the orders sought by the firm.
The firm says it has already secured another tenant who is ready to occupy the space, arguing that Nakumatt has not restocked the mall and this has reduced the foot traffic to the shopping complex, affecting other tenants.
The firm claims that Nakumatt owes it in excess of Sh107 million in rent arrears and other service charges.
Administrator
Last month the High Court gave Nakumatt Holdings a lifeline to fight for its recovery after it allowed the appointment of an administrator.
Justice Fred Ochieng ordered Peter Obondo Kahi to be appointed as an administrator under the provisions of Section 563 of the Insolvency Act.
Consequently, this keeps at bay the landlords who have been queuing to evict Nakumatt from its premises, unless allowed by the court or by consent of the administrator.
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