Aya Group’s Pearl of Africa Hotel has once again been re-advertised for sale to recover debts.
Auctioneers from Armstrong Limited advertised the sale of the five star hotel.
“Upon instructions from the High Court of Uganda (Commercial Division), we shall proceed to sell the property together with all thereon by public auction pursuant of to a warrant of attachment and sale issued by High Court unless the judgment Debtor pays us the entire outstanding decretal sum (including interest) before the fall of the hammer at the auction,” Armstrong Limited said in the advert.
The auction is expected to happen on May, 3, 2024, unless the owners pay the money accruing.
The auctioning process stems from a court case in which Industrial Development Corporation of South Africa Ltd secured an order allowing them to put the hotel up for sale to recover over $118million (Shs429billion) from Aya Group.
In 2021, Aya Investments applied for a temporary injunction stopping the sale of its hotel by Industrial Development Corporation of South Africa Ltd.
This was after the South African company indicated that it wanted to sell the hotel to recover the money lent to Aya.
It stems from 2007 when Aya entered into financing agreements with the South African company while constructing the hotel in Nakasero but according to Aya, misunderstandings developed mid-way, with accusations and counter accusations.
Aya in his defence to court, Aya said the South African company committed several breaches of the financing agreements, which resulted in gross delay of hotel operations and the heavy losses occasioned.
In February last year, the liquidation process of the AYA Investments Uganda Ltd commenced, and court-appointed Robert Mugabe, the director of insolvency and receivership at the Uganda Registration Services Bureau (URSB), the official receiver, and subsequently, the provisional liquidator.
