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Uchumi - A value play?
obiero
#401 Posted : Tuesday, May 14, 2019 8:37:25 PM
Rank: Elder


Joined: 6/23/2009
Posts: 11,863
Location: nairobi
KaunganaDoDo wrote:
KaunganaDoDo wrote:
Ericsson wrote:
obiero wrote:
KaunganaDoDo wrote:
obiero wrote:
KaunganaDoDo wrote:
obiero wrote:
KaunganaDoDo wrote:
VituVingiSana wrote:
KaunganaDoDo wrote:
VituVingiSana wrote:
KaunganaDoDo wrote:
obiero wrote:
MugundaMan wrote:
The funny thing is you will still see people throwing good money into the casino despite proper shavings like these Laughing out loudly . Isatragedy. GET OUT of the casino before it is TOO LATE buddies!

Another one bites the dust


Ask yourself, according to Court Records, out of the 6.6B worth of creditors Money, the only creditors owed 865M were the one enjoyned in the liquidation prayers. This tells you that most of the creditors dont want this liquidation. 13% of the creditors. They require more than 25%.
Watapata 25%. Someone has to start the ball rolling.


The ball has been in the legal Court for 6 months, asking people interested to be enjoyned. Only 13 per cent have shown ethuciasim. Before a board can call for CVA, you do your background first. Otherwise it will be Russian Roulette. Most Suppliers, including Multinationals like Coca-Cola have already resumed, and are thus onboard.
It's a process. In KE, 6 months into a court case is just the beginning. Look at banks who sue defaulters.


UCHUMI SUPPLIERS AGREE TO FORFEIT 2.5B
uppliers of troubled Uchumi supermarkets have agreed to forfeit Ksh.2.5 billion debt owed to them as part of a proposed recovery plan for the retailer.

The slash on debt represents 70 percent of the total Ksh.3.6 billion owed to the suppliers for goods supplied.

The suppliers will be paid 30 percent of the accruing debt, 40 percent of the debt will be converted to equity through preferential shares while 30 percent will be discounted debt.

“This is a positive development for the company. It will however be an ongoing stakeholder engagement at both the company and shareholder level,” said Mohammed Mohammed CEO Uchumi
Supermarkets.

In March this year, Uchumi gave the creditors two options; either take 30 percent of what the retailer owes them or be prepared to lose all their money.

The adoption of the debt redemption strategy under Uchumi’s self initiated Company Voluntary Agreement (CVA) gives breathing room to the under fire retailer having faced a barrage of winding up petitions in 2018.

No one will supply them even if they manage to reopen


“Liquidation is not the best option. Suppliers can now expect some down payment on existing debt. We will now work together to see a resumption of business,” said Kimani Rugendo, Chairman, Uchumi Suppliers.

The new debt redemption will is now be pegged on the liquidation of Uchumi assets including the sale of two parcels of land in Roysambu and Lang’ata Road.

The decision by the suppliers grants Uchumi a continued supply of goods even as the existing board seeks a complete turnaround for the cash strapped firm.

“Today was a vote of hope for the future. A vote for this brand is a vote for Kenyan manufacturers,” added Uchumi Supermarkets Chairman John Karani.

Kimani Rugendo is too deep into this thing to say anything else.. Meanwhile, simba has liquidated KES 9000,000,000 worth of Uchumi property to settle long outstanding debt. The thing is now insolvent as assets are being stripped! Remember KDF in Kasarani, simba land sale, Uchumi Langata Hyper..


You really survive on hearsay, which is a very dangerous thing for someone calling himself an analyst. The 900M KCB is not liquidated assets, its part of the planned payout from the settlement agreement yesterday the CVA, it will come from proceedings from the sale of land, and it has not been done yet, KCB has agreed to write off over 450M shillings, in accrued interests and penalties.

So is simba a supplier or a creditor or a preference shareholder or all the above

Obiero is right.The loan kcb gave was secured by the ngong rd hyper.
The hypermarket was sold and KCB pocketed the money.
https://www.standardmedi...s-quest-to-regain-glory

"But before the rubber could meet the road, the plan was thrown into a tempest. KCB, cautious of the winding up petition, withheld proceeds of the sale of Ngong Road Hyper after Uchumi sold the property for Sh1.4 billion, at a time when the retailer was almost running on empty shelves and badly needed the cash.

Kipng’etich said the retailer’s board has since been forced to change strategy as a result and decided to let KCB keep the proceeds to reduce finance costs. “The proceeds from the sale of Ngong Road Hyper helped reduce Uchumi’s debt owed to financiers from Sh2.5 billion to Sh1.1 billion,” Kipng’etich told Weekend Business. “Part of our focus in the stabilisation phase is debt reduction and these efforts will continue until Uchumi is debt free.”


KCB to receive Sh900 million from Uchumi's land sale
The 20 acre piece of land is currently at the center of dispute between the Kenya Defence forces and the troubled retailer.
In Summary
• Uchumi has been banking on selling the land to turn around its dwindling fortunes that have seen it sink in a Sh7.89 billion debt owed to the government, banks, and creditors.

• The 20-acre piece of land is currently at the center of a dispute between the Kenya Defence forces and the troubled retailer.

Uchumi Supermarket outlet
Uchumi Supermarket outlet
Image: courtesy
KCB Group is set to pocket the largest share of proceeds raised from the sale of Uchumi land.

Debt restructuring proposal by Uchumi shows that the lender will receive Sh900 million out of the Sh2.8 billion to be raised after the land sale.

This is despite the bank waiving and discounting Sh546.47 million from the total Sh1.45 billion outstanding balance.

The lump sum amount will be used to pay at least Sh672 million overdraft facility taken in two occasions and a Sh228 million lease.

At least 37.8 per cent or Sh1.06 billion of the proceed will be used on legal fees and commissions.

The 20-acre piece of land is currently at the center of a dispute between the Kenya Defence forces and the troubled retailer.

A drive through the highway shows that KDF has moved a number of infantry fighting machines, and full-time military officers manning the land.

However, in December last year, a customer identification report from Metropol Corporation Limited showed that the land has already been purchased by City Preacher Edward Mwai of Jesus Winner Ministry.


People like spreading Rumours, akin to Reverse Overconfidence Biases taught in Behavioural Economics at MIT, Overstating Positive Impact of Good News and Understating Negative Impact of Bad News in Pricing Stochastic Models. The headline item about KCB and The millions has nothing to do with Ngong Road plot. That plot was liquidated long time ago, 2 years, its not in Uchumi Books . While I am not a shareholder of Uchumi, People should contribute on subject matter they know that they know.

2 years ago is a short time.. It will help if you check out the equity position of Uchumi once they release the delayed results
COOP 5,500; KCB 3,700; KQ 221,100
FUNKY
#402 Posted : Wednesday, May 29, 2019 10:38:12 AM
Rank: Veteran


Joined: 4/30/2010
Posts: 1,456
VituVingiSana
#403 Posted : Wednesday, May 29, 2019 10:41:03 AM
Rank: Chief


Joined: 1/3/2007
Posts: 16,052
Location: Nairobi
FUNKY wrote:
https://www.businessdailyafrica.com/corporate/companies/Uchumi-alerts-CMA-land-tussle-with-KDF/4003102-5136070-view-asAMP-9ro14vz/index.html?__twitter_impression=true

“The Roysambu KDF Camp is on Ministry of Defence land. The issue of laying claim to a military camp does not arise. The onus is on the claimant to provide evidence,” said KDF spokesperson Colonel Paul Njuguna in response to earlier Business Daily queries.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
FUNKY
#404 Posted : Monday, July 01, 2019 9:16:03 PM
Rank: Veteran


Joined: 4/30/2010
Posts: 1,456
FUNKY
#405 Posted : Tuesday, July 09, 2019 12:51:45 PM
Rank: Veteran


Joined: 4/30/2010
Posts: 1,456
Angelica _ann
#406 Posted : Thursday, July 11, 2019 10:10:15 AM
Rank: Elder


Joined: 12/7/2012
Posts: 10,564
FUNKY wrote:
https://www.businessdailyafrica.com/news/539546-5188786-57x1omz/index.html


The branch has been closed since March this year, so why the fight?
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Ericsson
#407 Posted : Thursday, July 11, 2019 10:16:08 AM
Rank: Elder


Joined: 12/4/2009
Posts: 6,893
Location: NAIROBI
Angelica _ann wrote:
FUNKY wrote:
https://www.businessdailyafrica.com/news/539546-5188786-57x1omz/index.html


The branch has been closed since March this year, so why the fight?


Pesa haijalipwa and probably uchumi haven't handed over to the owner
sparkly
#408 Posted : Thursday, July 11, 2019 10:44:14 AM
Rank: Elder


Joined: 9/23/2009
Posts: 7,049
Location: Enk are Nyirobi
FUNKY wrote:
https://www.nation.co.ke/news/Daniel-Moi-in-another-land-ownership-feud/1056-5177994-9qqeo6z/index.html


Following the trail...

1. GOK acquired the Kasarani land from Israeli bros.
2. Indications that Israeli bros were paid KShs 25m (or more) by KDF;
3. Land was however transfered to Moi/ Kulei company instead of KDF.
4. Land documents shredded and flushed down Ardhi house toilets.
5. Moi/Kulei company then sold the land to then cash rich Uchumi for Kshs 109m.

Whatever is done in the dark will come to light.
Life is short. Live passionately.
Angelica _ann
#409 Posted : Thursday, July 11, 2019 11:05:58 AM
Rank: Elder


Joined: 12/7/2012
Posts: 10,564
sparkly wrote:
FUNKY wrote:
https://www.nation.co.ke/news/Daniel-Moi-in-another-land-ownership-feud/1056-5177994-9qqeo6z/index.html


Following the trail...

1. GOK acquired the Kasarani land from Israeli bros.
2. Indications that Israeli bros were paid KShs 25m (or more) by KDF;
3. Land was however transfered to Moi/ Kulei company instead of KDF.
4. Land documents shredded and flushed down Ardhi house toilets.
5. Moi/Kulei company then sold the land to then cash rich Uchumi for Kshs 109m.

Whatever is done in the dark will come to light.


This is among the few crooked deals that have come to light from this mzee and his cronies. You can imagine what they did in those many other parastatals they used to create at their discretion and plant their cronies. Crooks, crooked, .....
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
KaunganaDoDo
#410 Posted : Thursday, July 11, 2019 11:59:04 AM
Rank: Member


Joined: 8/6/2018
Posts: 155
sparkly wrote:
FUNKY wrote:
https://www.nation.co.ke/news/Daniel-Moi-in-another-land-ownership-feud/1056-5177994-9qqeo6z/index.html


Following the trail...

1. GOK acquired the Kasarani land from Israeli bros.
2. Indications that Israeli bros were paid KShs 25m (or more) by KDF;
3. Land was however transfered to Moi/ Kulei company instead of KDF.
4. Land documents shredded and flushed down Ardhi house toilets.
5. Moi/Kulei company then sold the land to then cash rich Uchumi for Kshs 109m.

Whatever is done in the dark will come to light.


Accualy the Government didnt buy the land and allocate it to KDF..the idea of buying alloacaating it to KDF was shelved since the plot was small and sorounded by residential buildings...unsuitable for military base. the land was however , transferred to Solio Construction (the transfer deed disappeared mysteriously . KDF will not prove a case in court if out of court settlement fails. from 2001 when Uchumi bought the land to 2019 is 18 years , it will be hard for KDF, even with their military gears. what disappeared from the records, is how the land was transfered from The Jewish Brothers to Solio Construction.
sparkly
#411 Posted : Saturday, July 13, 2019 1:22:43 AM
Rank: Elder


Joined: 9/23/2009
Posts: 7,049
Location: Enk are Nyirobi
KaunganaDoDo wrote:
sparkly wrote:
FUNKY wrote:
https://www.nation.co.ke/news/Daniel-Moi-in-another-land-ownership-feud/1056-5177994-9qqeo6z/index.html


Following the trail...

1. GOK acquired the Kasarani land from Israeli bros.
2. Indications that Israeli bros were paid KShs 25m (or more) by KDF;
3. Land was however transfered to Moi/ Kulei company instead of KDF.
4. Land documents shredded and flushed down Ardhi house toilets.
5. Moi/Kulei company then sold the land to then cash rich Uchumi for Kshs 109m.

Whatever is done in the dark will come to light.


Accualy the Government didnt buy the land and allocate it to KDF..the idea of buying alloacaating it to KDF was shelved since the plot was small and sorounded by residential buildings...unsuitable for military base. the land was however , transferred to Solio Construction (the transfer deed disappeared mysteriously . KDF will not prove a case in court if out of court settlement fails. from 2001 when Uchumi bought the land to 2019 is 18 years , it will be hard for KDF, even with their military gears. what disappeared from the records, is how the land was transfered from The Jewish Brothers to Solio Construction.


Read between the lines. It's impossible Moi & Kulei used their own money to pay off the Israeli brothers.
Life is short. Live passionately.
FUNKY
#412 Posted : Tuesday, July 23, 2019 11:37:08 AM
Rank: Veteran


Joined: 4/30/2010
Posts: 1,456
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