Mediamax has filed for insolvency to avoid paying over 100 employees sacked last month, who had not been paid three-month salaries and retrenchment dues.
Kahawa Tungu understands that Mediamax has hired the services of Kereto Marima, a corporate insolvency and restructuring practitioner to execute the move.
Insolvency is the state of being unable to pay the money owed, by a person or company, on time. This means that if Mediamax is declared insolvent, all sacked employees might lose their pay, unless the assets of the company are disposed to pay them.
Inside sources have intimated that in case the insolvent move fails, the company CEO Ken Ngaruiya is planning to shut down the company, which in turn will be ‘bought’ by another company.
Already, it is reported that a company bearing the name “The People Media Group Limited” has been registered, in preparation for the ‘buyout’. The company name is Similar to that of Mediamax’s publication, the People Daily.
The affected employees were sacked at night through a text message from the human resource department, towards the end of June.
Immediately after they were sacked, K24, the TV station owned by the media house unveiled a new team, with five presenters poached from Switch TV.
The company had been involved in litigation against the staffers, who sued the company for slashing their salaries by up to 50 percent.
Despite the workers winning several cases and serving the company with court orders, the company has disobeyed the orders.
Mediamax is the holding company of the People Daily Newspaper, Tv stations (Kameme and K24) Radio stations ( Emoo FM, Milele FM, Kameme FM, Msenangu (formerly Pilipili FM), Mayian FM and Meru FM.