Despite a ruling by the Kenyan High Court, declaring that PrideInn Hotel Group should be placed under a receiver manager over alleged unpaid debts, the property group says that it is still under the control of its directors.
In a statement released by PrideInn it says that it has contested the High Court Ruling and that it has applied to the Court of Appeal to challenge the ruling. The hearing is scheduled to take place on 4 October.
It was earlier reported that PrideInn Hotels and Investments Ltd has been put under liquidation for inability to pay a Sh69.3 million debt.
High Court Judge Patrick Otieno allowed the winding up petition filed by Tropicana Hotels Ltd saying the debt is not genuinely disputed.
However PrideInn disputes the non-payment allegations, which it says is due to fraud, misrepresentation and coercion. The group maintains that it is fully willing and able to pay “so-called” debts, should the Court of Appeal rule so.
PrideInn assured clients that all eight of its hotels are operating as normal and that it will continue with it short term growth strategy of establishing 10 more hotels over the next three years.