Kaluworks; one of the companies associated with Billionaire Manu Chandaria’s Comcraft Group has been placed under receivership over failure to pay a Sh4.3 billion debt.
The company was placed under receivership by the NCBA Group. The bank has appointed Pongangipalli Rao as the receiver manager for the top steel manufacturer.
“Notice is given that the above company (Kaluworks) was placed under administration on May 27, 2021 by the holder of a qualifying floating charge,” a notice published on the latest Kenya Gazzete read in apart.
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Kaluworks; a top player in the manufacturing aluminium utensils and roofing sheets started enduring financial difficulties a few years ago owing to reduced sales occasioned by increased competition in the industry.
A few months ago, a number of lenders made auction moves for assets that had been used by Kaluworks to guarantee for loans which it had failed to pay as agreed upon.
Kaluworks has been operating in Kenya for close to 100 years. It started out as a cookware manufacturer and developed over-time, introducing its first set of aluminum products in 1988.
Reports on a local daily has cited some bankers claiming that they were confidently loaning Kaluworks billions of shillings owing to company’s link to the Chandaria family that are known to be great businessmen.
