Britania Food LTD Defaults more Than sh.1.3 billion Loan From DTB

Britania Foods Limited, a biscuit manufacturer has been placed into administration after defaulting on loans totalling more than 1.3 billion shillings from DTB(Diamond Trust bank) and other creditors.

DTB appointed Peter Kahi of PKF Consulting as the administrator of the company, which owes the manufacturer 900 million shillings. The appointment comes as the biscuit maker is battling an insolvency petition filed by one of its suppliers, Uzuri Foods Limited, which is claiming 17.3 million shillings.

“The administration appointment was drawn by DTB bank for its unpaid debt of over Sh.900 million. Britaina owes over 400 million shillings to its suppliers and we will be trying to revive the business and repay the debts. It may not have other bank creditors,’’ Mr Kahi commented.

Britania Ltd which was one of the country’s leading biscuit brands has been hard hit by decreased demand from its main distribution system of schools, hotels, restaurants, and supermarkets. Its factory shut down in October last year.

Uzuri Foods Limited, which supplied flour to Britania, filed an insolvency petition last month over 17.3million shillings in debt for deliveries made between March and August 2019. Uzuri requested that the High Court appoint Kolluri Venkata Subbaraya as liquidator and rant him authority to sell the manufacturer’s assets in order to recover the debt.

“None of the directors, shareholders, employees and no other person is authorized to transact any business on behalf of the company without express consent from the Administrator,” Mr Kahi added.

Britania claimed that retail giants Nakumatt and Tuskys went bankrupt while they owed more than 50 million shillings and that the Covid19 pandemic had hit their largest customer base- schools and hotels.

In an effort to address the matter amicably the appointed administrator gave the creditors a timeline to table their claims “Creditors of the company are required to send full particulars of any claims that they may have against the company to the undersigned on or before September 3, 2021”.

In December 2016, Britania received an undisclosed capital injection from the United Kingdom’s development finance institution CDC via its Nairobi-based private equity fund manager Catalyst Principal Partners

The funds were to be used to upgrade Britania’s factory, develop new products and diversify its offering in the fast-moving consumer goods in the market.

BY DELINE RAMIRO