Kenya Data Networks Limited (KDN) and Soliton Telmec Limited (Soliton) have settled their disputes regarding outstanding accounts and verification of work done outside court.
According to agreement, Soliton Telmec will withdraw the Winding-up petition filed against KDN in the High Court of Kenya. Both parties have also agreed to withdraw the various applications and appeals arising from the Petition.
According to the new KDN CEO, Mr. Shahab Meshki, the dispute is now amicably resolved. Both parties are also looking to continue their mutual business relationship.
“We sat down with the Soliton Management, and all disputes relating to payment and verification of work done were settled to the satisfaction of both parties. Thereafter, the amounts agreed to be outstanding, with necessary adjustment and set off, were duly settled,” Mr. Meshki said.
Mr. Meshki said that it was unfortunate that the matter went to court.
“KDN is not, and has never been in financial difficulties – as evidenced by the present settlement. As such it is unfortunate that this matter ended up in court. Both parties have agreed to look into possible ways and means to continue with their partnership in areas of collaboration, and mutual interest. KDN is a successful and vibrant business. We are a carrier of carriers, and provide key telecommunication infrastructure services to leading enterprises in East Africa, and will continue to do so,” he said.
Soliton Telmec CEO, Engineer Abdirahman Sheikh, confirmed that KDN has agreed with Soliton while also saying that the direction the matter took is unfortunate.
“We now concur that there is no issue of KDN being insolvent or having financial difficulties. Unfortuantely the dispute and the court action arose because of misunderstandings in the financial documentation and accounting records between the companies. These issues have now been fully resolved.”Mr Sheikh added.
Soliton Telmec sued KDN over an accrued debt of Ksh 400 Million while KDN disputed the figures alleging that the amount was exaggerated.