A company being placed under receivership in Kenya is akin to pronouncing its death-sentence. Look around the carcasses littering the kenyan corporate landscape and you begin to appreciate this perception. Far too many companies have failed to recover from the receiver's scapel as the 'radical surgery' tries to rid it of its corporate fat, streamline and re-engineer its operations to yank it from red ink. Recovery rate is dismally low, because most receivers are only interested in their monthly emoluments which are astronomical and actually end up haemorrhaging the company that is at that moment still in ICU. Plus they must also be paid whether or not the co. is profitable, and asset-stripping is common to pay off 'lenders/ debenture-holders.'
That Uchumi may emerge from receivership will therefore be a milestone not very common on the kenya corporate landscape. Of course it helps your cause if the govt of the day is on your side. Mukiha, u r right: the debt-to-equity conversion will be the company's lifeline, as will be improving the ambience and appeal of their stores. Uchumi back to black ink, re-listed and grossing profits would be a big coup for Ciano.
BTW, why shouldn't he come back to Uchumi now wearing the CEO cap - after all he's proved very instrumental in the company's turnaround and this shows he is sufficiently business-minded and able to deal with the numerous stakeholders (suppliers, general creditors, lenders, govt, customers,etc)efficiently?