Luxury hotel Glee Nairobi, a property linked to businesswoman Mary Wambui Mungai, has been placed under administration after Equity Bank moved to recover a multi-billion-shilling debt owed by the hotel's owners.
The appointment of insolvency practitioner Kamal Anantroy Bhatt of Anant Bhatt LLP took effect on July 6 under the Insolvency Act, 2015, transferring control of Glee Hotel Limited's operations and assets from its directors to the appointed administrator. The move follows efforts by Equity Bank to recover loans reportedly amounting to between KSh7.75 billion and KSh8.27 billion.
According to the administration notice, the company's directors have lost authority over the hotel's assets and management. They are required to submit a statement of affairs within 12 days, while creditors have been given 30 days to lodge their claims with the administrator for consideration.
The development comes weeks after the High Court directed Mary Wambui to deposit KSh100 million as a condition for temporarily stopping Equity Bank from auctioning the Runda-based hotel. The order was linked to a consent agreement under which the bank had agreed to accept KSh7.75 billion as full settlement of the outstanding debt, provided payment was made within the agreed timelines.
Despite being under administration, Glee Nairobi continues to operate. The 211-room luxury hotel, situated on eight acres in Runda along Nairobi's Northern Bypass, remains open to guests, offering accommodation, conference facilities, restaurants and other hospitality services as the administration process continues.
The appointment of insolvency practitioner Kamal Anantroy Bhatt of Anant Bhatt LLP took effect on July 6 under the Insolvency Act, 2015, transferring control of Glee Hotel Limited's operations and assets from its directors to the appointed administrator. The move follows efforts by Equity Bank to recover loans reportedly amounting to between KSh7.75 billion and KSh8.27 billion.
According to the administration notice, the company's directors have lost authority over the hotel's assets and management. They are required to submit a statement of affairs within 12 days, while creditors have been given 30 days to lodge their claims with the administrator for consideration.
The development comes weeks after the High Court directed Mary Wambui to deposit KSh100 million as a condition for temporarily stopping Equity Bank from auctioning the Runda-based hotel. The order was linked to a consent agreement under which the bank had agreed to accept KSh7.75 billion as full settlement of the outstanding debt, provided payment was made within the agreed timelines.
Despite being under administration, Glee Nairobi continues to operate. The 211-room luxury hotel, situated on eight acres in Runda along Nairobi's Northern Bypass, remains open to guests, offering accommodation, conference facilities, restaurants and other hospitality services as the administration process continues.
