Broke retailer Uchumi Supermarket could escape liquidation after rallying majority of the creditors to back the Company Voluntary Arrangement (CVA). Speaking to the Star on phone yesterday, the retailer's CEO Mohamed Mohamed said the firm is awaiting the government's response before presenting the agreement in court next month. We are waiting on the government before proceeding with the recovery plan,'' Mohamed said. According to the recovery plan, creditors are to take a 70 per cent cut on the struggling retailer’s Sh3.6 billion debt on condition that they are represented in its decision-making team. The government seems skeptical over Uchumi's recovery plan after past capital infections failed to bear fruit.

Source: The Star January 14, 2020 00:56 UTC