Court Approves Aya Bakery Receivership

The Commercial Court has rejected an application by Aya Bakery to block being put under receivership and paying a sh2b arbitral award to Roko Construction, reported. The head of the Commercial Court, Justice Geoffrey Kiryabwire, ruled that Enoth Mugabi of Mugabi and Company Advocates, who was appointed receiver of the Aya Bakery, should, instead, immediately enter the premises and prepare a statement of affairs of the company and file his findings in court. The judge also ordered Mugabi to ensure the smooth operation of the company under receivership until the final determination of the company’s main application challenging the award and receivership. “The receiver shall not waste or dispose of any company assets. He should also ensure that receivership is managed in the interest of all creditors,” Kiryabwire ruled. Aya Bakery was recently put under receivership for failure to pay over sh2b to Roko Construction Limited, which it contracted in 2005 to construct a factory building at Plot 16A in Kawempe on Bombo Road. Read more.