[2008-10-15]  Stockbroking agency fights off liquidation
Auctioneers moved into the Mombasa offices of Tsavo Securities Ltd, a stockbroking agent, after a shareholder obtained a liquidation order from the High Court on the firm.

However, speaking to the Standard on phone yesterday evening, Mr George Kithi, a partner in Madzayo Mrima & Company Advocates, who represents Tsavo, said the judge had lifted the liquidation order, because the plaintiff failed to furnish the court with key facts relevant to the matter.

On Monday, Kithi sent a letter to newsrooms, warning media houses against publishing "unconfirmed rumours" about their client .

Court order

The stay will remain in force until an interparties hearing before Justice Leonard Njagi in Mombasa this morning, after which he will make his ruling on whether to lift the liquidation order.

The Standard learnt that the auctioneers moved into the offices on Thursday last week, after the High Court appointed a Mr James Nelson O. Omelea as the interim liquidator. They kicked out everyone and locked the doors.. The order gave the liquidator full control over the firm’s bank accounts and sets his salary and that of his team at a fixed rate. The Standard obtained a copy of the liquidation order issued by Justice Njagi.

The petitioner is referred to as a Mr James Daniel Dena, and the petition was filed by Steve Kithi & Co. Advocates. The interim liquidator is a Senior Partner in the firm of Henry & Associates, Certified Public Accountants. The order says that he is mandated to collect and protect the assets of the stock agent, including debts due and payable by Messrs Nanda Properties Ltd to Tsavo, under the ‘Agreement For Sale of Shares, between them dated June 30, 2008.


Source: The Standard