Myspace Property served with insolvency petition over Ksh.110.7 million debt
Myspace Properties has been served with an insolvency petition by Teams Construction, citing a debt of Ksh.110.7 million.
The amount due, according to Teams, was the balance of the contractor’s costs, interest, and construction services delivered to the company up to September 15, 2021.
In November 2012 Mwenda Thuranira, the founder of Myspace, contracted the firm to construct One Twiga Apartments off Links Road in Mombasa
“Upon finalisation and handover of the project, in breach of its obligations under the contract, the company failed to pay to the petitioner the balance of construction fees due,” said Team Construction in a petition through its lawyers, Shapley Barret and Company Advocates.
On September 4, 2014 after Justice E. Togbor (retired) was appointed an arbitrator, the parties reached an agreement on an arbitral award, which was accepted by the Court on December 15, 2015. Team Construction, on the other hand, claims that despite the petitioner’s numerous court actions, including execution efforts and regular reminders, the company has yet to comply with the ruling.
“The petitioner has not succeeded in tracing any attachable assets owned by the company and all attempts at execution have been frustrated by the Company including by hiring “goons” and using rogue officers of the Kenya police to forestall the same,” says the construction firm.
In the petition, Team Construction says vehicles attached for auction disappeared after Myspace Properties hid or took them to unknown locations or transferred them to third parties.
The debt rose from Ksh.47.7 million and continues to rise owing to interest, court costs and penalties arising from agreed contractual clauses.
“Despite the company’s director, Mr Thuranira, giving a personal guarantee for the debt, no amount has, to date, been paid to the petitioner,” Team Construction says.
This has forced it to take the liquidation route with the firm requesting for a receiver to be appointed and the costs granted to the petitioner.
Nairobi Security Exchange admitted Myspace Properties under the Ibuka Programme in 2019.