Nairobi — The High Court has declined to issue orders to extend the term of an administrator managing DusitD2 hotel in Nairobi.
The orders declining the request to extend the term of the administrator by a further 12 months were issued by Justice Alfred Mabeya against Ms Vruti Shantilal Shah who was appointed by I&M Bank to manage Cape Holdings Limited (CHL).
In his ruling, the Judge observed that the administrator had not demonstrated meeting the objectives of the administration.
The property has been under her management after it was charged to the bank following a loan of Sh2.82 billion.
Synergy Industrial Credit Limited opposed the extension saying she was not serving the interests of other creditors.
"The administrator was quiet in her affidavit on what she intended to do if the administration was extended for the next 12 months," the judge said.
The judge pointed out claims that CPL was able to pay its debts ad it was diverting surplus finances to develop third-party-owned properties.
He said that when this allegation laid in court it was not challenged.
The property has remained with controversy after Synergy Industrial Capital expressed interest to have it auctioned over a Sh5.5 billion debt while the lender insists on having priority due to the charge on it.
