The government through the Ministry of Investments Trade and Industry has intervened following the news of Mobius Motors winding up its business operations through liquidation.
In a statement on August 7, Trade Principal Secretary (PS) Abubakar Hassan revealed that ministry officials met with the company’s leadership in to better understand the factors leading to this decision.
“Upon noticing the proposed voluntary winding up by Mobius Motors, together with the Kenya Association of Manufacturers (KAM) CEO, we visited the leadership of the company led by the Kenyan Director, Mr. John to understand the causes of the winding up,” he said.
During the discussions, they explored various rescue options including corporate recovery and restructuring.
“We explored corporate recovery, restructuring, and rescue mechanisms that can be exploited in such circumstances.”
Additionally, PS Abubakar announced that the Ministry would establish a program designed to assist struggling companies attract strategic investors who are interested in local investment opportunities moving forward.
Also Read: Layoffs Loom as Mobius Motors Shuts Down Business Operations
“Going forward, we are coming up with a program to assist such companies get strategic investors who are interested in distressed brownfield investment opportunities,” said Abubakar.
Mobius Motors Announces Business Closure
Earlier the company had in a statement made on August 5, announced that it was entering a voluntary liquidation process aimed at winding up its activities.
The company said that the decision was made at a meeting of Shareholders held by its management on August 5, 2024.
As part of the process, the company appointed KVSK Sastry as the liquidator in charge of overseeing the winding up of the company.
“At a meeting of the Shareholders held on 5-Aug-2024, it was Resolved to place the Company under Liquidation as per Section 393(1) (b) of the Insolvency Act and to appoint KVSK Sastry as the Liquidator to wind-up the Company,” read the statement.
Also, the company said that it would make public the list of names of the creditors and proxy forms for inspection on August 9, 2024, at the company’s offices in Nairobi.
“List of names of the Creditors and Proxy forms will be made available, free of charge, for inspection on 9-Aug-2024 at the Company’s offices at Mobius Motors office, Block C3, Sameer Business Park, Mombasa Road, Nairobi.”
Another Company That Underwent Liquidation
The year 2024 has seen several local and international companies shut down their business operations citing financial constraints among other reasons.
One notable company is Hashi Energy Limited, one of the indigenous oil marketing companies in East Africa, which announced in June that it was also undergoing a liquidation process.
Also Read: Ahmed Hashi: Meet Tycoon Forced to Sell 31 Vehicles & Land Over Ksh 5 B Debt
In a public notice, the company invited competitive bids from investors who were interested in acquiring the company’s valuable assets situated across multiple locations.
The assets put on auction included 31 vehicles, a gas cylinder revalidation plant, and acres of land in multiple locations including Mombasa, Eldoret, Nairobi, and Kisumu.
Reports indicated that this move was prompted by the company’s efforts to pay off its massive debt of Ksh5 billion.
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