Mobius Motors Kenya enters liquidation amid debt resolution

Automaker Mobius Motors Kenya Ltd has entered into Creditors’ Voluntary Liquidation as per the Insolvency Act.

This means that Mobius Motors has decided to shut down and will be going through a formal process to close its operations.

In a statement on Monday, Director, of Mobius Motors Kenya Ltd Nicolas Guibert said the decision was made during a meeting held the same day and the company appointed KVSK Sastry as the liquidator, who will handle paying off the company's debts.

"At a meeting of the shareholders held on August 5, 2024, it was resolved to place the Company under Liquidation as per Section 393(1) (b) of the Insolvency Act and to appoint KVSK Sastry as the Liquidator to wind up the Company," Guibert said.

He noted that a meeting with the company’s creditors is scheduled for August 15, 2024, at 9 am at the Mobius Factory, located at the Sammer Africa, Mombasa/Enterprise Road Junction in Nairobi.

During the meeting, Guibert said creditors will review and approve the choice of KVSK Sastry as the liquidator.

"Notice is hereby given that a meeting of the creditors will be held on August 15, 2024, at 9 am at Mobius Factory (Sammer Africa, Mombasa/Enterprise Road Junction, Nairobi) to consider, and if thought fit, to pass a Resolution approving the Shareholders' nominee as the Liquidator of the Company as per Section 408 of the Insolvency Act," he said.

Additionally, from August 9, 2024, the company will provide a list of creditors and proxy forms for review at Mobius Motors' office.

"List of names of the Creditors and Proxy forms will be made available, free of charge, for inspection on August 9, 2024, at the Company's offices at Mobius Motors office, Block C3, Sameer Business Park, Mombasa Road, Nairobi," Guibert said.

When a company enters into voluntary liquidation, the liquidator takes over the company’s management, and the directors lose nearly all their authority. The liquidator sells off the company's assets, covers the liquidation costs, and then distributes any leftover funds to the creditors.

Mobius was founded in 2011 by Joel Jackson to build a vehicle in Africa, for Africa. The first-generation Mobius II was launched in Kenya in 2015. The company was incorporated in the United Kingdom in 2010. As of 2018, the company was in the process of building an in-country manufacturing plant.