Tuskys siblings in truce to progress make or break rescue deal
Tuskys majority shareholders represented by the Orakam Holdings Limited have unanimously approved terms progressing the efforts to secure emergency credit facilities amounting to Ksh.2 billion.
In an extra-ordinary meeting staged on Monday, the shareholders who comprise of the children of founder Joram Kamau voted to formally secure the credit facility from a Mauritius based private fund in a deal that will see the partners put up their shareholding as security to the term-loan.
“The majority of shareholders present at the meeting have unanimously approved the progression of ongoing efforts to formally secure structured credit facilities amounting to Ksh.2billion necessary to provide operating capital in the short to medium term,” Tuskys Chairman Bernard Kahianyu noted in a statement.
The Monday extra-ordinary general meeting held at the Tuskys headquarters along Mombasa road represented the tipping point in the retailer’s desired turnaround with the lack of a resolution almost assuring of Tuskys descent to the abyss.
The crucial vote is expected to inject confidence within the new investors while paving Tuskys a path to stability following its recent spate of troubles that has exposed its high debt position.
None of the siblings represented in the Orakam Holdings shareholder meeting opposed the meeting on spite of Yusuf Mugweru expressing concerns of the deal’s terms and the continued opacity of Tuskys financing position.
However, according to sources close to the deal, Monday’s meeting was a make or break affair for the retailer with siblings setting on a truce to salvage the retailer from near certain collapse.
The shareholders have given their commitments to providing the necessary co-operation and support to ensure the speedy conclusion of the capital sourcing initiative.
At the top of Tuskys concerns will be freeing itself from a debt trap that has seen its creditors threaten to sink the retailer including Hot Point Limited which earlier this month filed a petition to wind up the company.
Landlords have for instance taken advantage of the volatility witnessed at the retailer to demand for pending rent arrears in an exercise that has seen several stores shut to avert auctions.
Meanwhile, staff at Tuskys are hoping for the deal to sail through to assure of their jobs along with the clearance of pending salaries dating back to July this year.