Business

PrideInn Hotels in fresh push to block liquidation

PrideInn Hotels plans to renew attempts to overturn a case on liquidation order filled against it by Tropicana Hotels Limited.

This is after expressing dissatisfaction in a court ruling made on Wednesday by Mombasa appellate court.

“PrideInn Hotels wishes to express its respect to the rule of law whereby a majority judgment by the court of appeal has dismissed our appeal but given 30 days to pay the disputed debt or face liquidation,” a statement issued by the hotel on Friday reads in part.

The group was not amused with the court decision which had seen two judges unanimously dismiss its appeal, saying it lacked merit. The hotel chain said it is engaging its legal team on the way forward.

The hotel chain is fighting a court battle on its inability to pay Sh69.3 million debt, of which it says it has not been granted an opportunity to provide evidence disputing it, “hence the liquidation process is seen as means of forcing payment of disputed debts.”

“We are very much shocked with the reasoning of one of the court of appeal judges claiming that any company can be liquidated at any time over a debt. As per our last statement we had issued a bank guarantee of Sh90 million which is already proof that the money is available to pay should we not find any other solution to further appeal on the same.

“This clearly demonstrates our solid financial position and therefore our capacity to meet our obligations,” the letter continued.

The hotel said its next action that involves consultation with its legal team will be conducted within the next 30 days. “This is within the grace period granted by the Court of Appeal to clear the debt in dispute,” it added.

Show More

Related Articles

Leave a Reply

Your email address will not be published.