Hashi Faces Auction Over Sh5B Debt

Hashi Energy’s properties worth billions of shillings will be auctioned off to cover a portion of a Sh5 billion debt.

The company, which entered into voluntary liquidation in March of this year, is experiencing financial difficulties, which has resulted in the forced selling of significant assets.

Dalali Auctioneers is organising the auction, which is expected to attract investors, industry leaders, and potential buyers interested in acquiring outstanding assets, particularly those in the energy infrastructure domain.

“All that property known as LR No.9695/50 Changamwe Mombasa County measuring 3.4Ha. The property is identifiable as Hashi Energy Mombasa Terminal located along Refinery Road,” Dalali Auctioneers said in a newspaper notice.

The properties under question are in Changamwe and include a variety of critical facilities such as an LPG processing facility, a bulk petroleum handling facility, a firefighting system, and service buildings. Other components include a pump manifold and an extension pipe network.

Hashi Energy’s financial difficulties have been a source of concern not only in Kenya, but also in its activities in Uganda, the Democratic Republic of the Congo, and Tanzania.

The company’s voluntary liquidation earlier this year demonstrated its failure to pay its financial responsibilities, prompting a reappraisal of its assets to settle outstanding debts.

According to reports, the ailing oil corporation borrowed some of the funds from Ecobank.

The decision to auction off these properties is significant not only for the company but also for the larger energy and business community, and the successful sale of these assets could provide a lifeline for Hashi Energy’s creditors, potentially allowing them to recover at least some of the debt owed to them.

The auction also sheds light on the difficulties that some energy companies are currently experiencing in a changing market scenario. The energy sector has been under heightened scrutiny as a result of its environmental impact and shifting global oil prices.

Companies having operations in numerous countries, such as Hashi Energy, have been navigating a complex and frequently unpredictable landscape.

All eyes are on the processes and the potential conclusion as potential bidders prepare for the auction. The auction outcomes may not only affect Hashi Energy’s future, but they may also set a precedent for how troubled energy companies’ assets are handled in the midst of a financial crisis.