Pinewood Beach Resort Moves To Court of Appeal To Challenge Links To English Point Marina Case
- ITCO Investments Limited is seeking orders to block Kenya Commercial Bank from taking over the operations of Pinewood Beach Resort and Spa
- ITCO Investments Limited asked the court to intervene by granting them the order sought and stop the managers from taking control over Pinewood, pending an appeal
- The legal battles date back to December 2010 when Pearl Beach Hotel Limited (PHBL) obtained a loan facility of KSh 5.2 billion from KCB to develop the English Point Marina
Amos Khaemba, a journalist at TUKO.co.ke, brings more than three years of experience covering politics and current affairs in Kenya.
Nairobi, Kenya - The legal tussle pitting ITCO Investments Limited and the Kenya Commercial Bank (KCB) has been escalated to the Court of Appeal over the control of Pinewood Beach Resort and Spa.
Source: UGC
ITCO Investments Limited wants KCB Bank blocked
ITCO wants an injunction issued against KCB, its receiver manager Kamal Anantroy Bhatt or any other person acting on their behalf against taking over or selling the Kwale-based hotel.
This comes after a High Court ruling that ITCO has termed erroneous because it was based on different legal suits to which they are not party.
In the Appeal filed under the Certificate of Urgency, Itco Investments Limited, through their lawyer Conrad Maloba, argues that High Court Judge Justice Peter Mulwa made a mistake “by finding in the impugned ruling that the High Court and Court of Appeal proceedings in Mombasa are directly in issue with the issues in the present suit HCCOMM/E57E/2023.”
In its Application, the lawyer says the applicant (ITCO) did not participate and is not a party to the Mombasa case HCC No. E063 of 2023.
In the Appeal, ITCO further says it is not the proprietor of Pinewood Beach Resort and Spa but only an operator of the asset.
Through its receiver manager, KCB is after the luxurious Kwale-based hotel over a loan dispute amounting to KSh 5.8 billion.
In the Application, however, ITCO says Pinewood Beach Resort and Spa is not an asset under the debenture.
The Court heard that the debenture seeks to unjustly curtail its operation and growth without first realizing the principal security or exploring all possible avenues of recovering its money.
How is ITCO Investments Limited related to English Point Marina
The loan was obtained by Pearl Beach Hotels Limited (PBHL), trading as English Point Marina, to develop the English Point Marina in Mombasa.
KCB had told the High Court that the loan was secured by, among others, debentures issued by the principal debtor and an all-asset debenture dated September 12, 2012, issued by ITCO to secure an aggregate principal of KSh 225 million.
ITCO Director Alnoor Kanji has since opposed the appointment of the receiver manager on the grounds that Pinewood Beach Resort and Spa and any other securities made were supplemental to the primary security- the English Point Marina Mombasa.
In the affidavit, Kanji has equally said that the Spa is not part of the assets under the debenture.
When reached for comment, Kanji pointed out that the value of English Point Marina is more than the principal amount borrowed.
English Point Marina is currently valued at Sh8 billion.
“There is no need for the bank to go for other property, yet the matter is still in court. It is also good to note that English Point Marina is worth more than the principal amount borrowed,” Kanji added.
Over the years, KCB has been involved in similar legal suits with businesses and investors.
In previous cases, KCB has faced criticism for its aggressive approach to loan recovery, often leading to protracted legal battles.
This pattern has raised concerns about the bank's finances and its handling of debtors, with some accusing KCB of heavy-handed tactics.
Source: TUKO.co.ke
