Tycoon Manu Chandaria has one of his flagship companies, Kaluworks Limited placed under receivership over a Ksh4.3 billion debt.
Kaluworks Limited owes NCBA. The company will be under NCBA’s purview until the debt is cleared.
Kaluworks manufactures aluminium products such as utensils and roofing sheets. It has been recording poor sales due to increased competition from new manufacturers.
Pongapipalli Rao will now be the receiver-manager of the firm, even as financial firms rush to auction Kaluworks assets over ballooning debt.
“Notice is given that the above company (Kaluworks) was placed under administration on May 27, 2021, by the holder of a qualifying floating charge,” Rao said in a notice dated June 18.
I&M Bank is also eyeing the assets Kaluworks assets over an outstanding debt running into billions of shillings.
Kaluworks is a subsidiary of Clovis Company Limited which is registered in Bermuda and owned by Comcraft Group, where Chandaria is the chairman and majority shareholder.
According to Forbes Magazine, Comcraft Group has subsidiaries in over 40 countries in the world. The total asset value for the company in 2011 was estimated to be over Ksh215.6 billion.
Chandaria is among the wealthiest industrialists in Africa and was named as such in 2011.