Cereal maker, Proctor & Allan Limited, got a major reprieve after the High Court lifted orders placing it under receivership.
Justice Njoki Mwangi, in her orders, ordered receiver managers Swaroop Rao Ponangipalli and Ponangipalli Venkata Ramana Rao not to interfere with the company's operations until the court issues further orders. "An interim order is hereby issued holding in abeyance actions and appointments of the second and third respondents as receiver managers of the applicant pursuant to debenture dated November 1, 2013 and debenture dated October 28, 2015, between the applicant and the first respondent in respect to the applicant," ruled Justice Njoki.
She directed that Proctor's operations continue as before the Kenya Commercial Bank (KCB) appointed the two receiver managers.
KCB appointed Swaroop and Venkata following a Sh1 billion loan payment row between it and the firm.
