Recovering Retailer Uchumi Set To Exit Receivership

Revitalised Kenyan supermarket operator Uchumi could exit receivership by December 2009 according to the Receiver Manager Jonathan Ciano, provided its KES1.2bn (US$15.9mn) bond issuance continues to be met favourably by shareholders. Uchumi has lurched in receivership since 2006 when its shares were suspended from the Nairobi Stock Exchange (NSE). In the unlikely event (as things stand) that the bond issuance fails to clear the retailer's debts, it is believed that Uchumi will propose a debt-to-equity conversion with the government and other creditors. A successful transition back into shareholder ownership and the ensuing relisting will undoubtedly strengthen Kenya's mass grocery retail

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