The planned auction of Jacaranda hotel to recover a debt owed to GT Bank, which was scheduled for Wednesday, has been stopped.
In a consent recorded before the High Court, Jacaranda hotel agreed to look for financiers to take over the loan, plus interest within 90 days.
Further, the parties agreed to cooperate to lift agency notices placed by KRA on the hotel.
Failure to get a financier as agreed, the bank will be free to sell the hotel by public auction.
The hotel, which is among the few surviving businesses that the late politician Njenga Karume left behind, has been earmarked for sale to recover a Sh257.6 million loan owed to Guaranty Trust Bank.
The four-star hotel, which is in the Westlands suburb, has 128 bedrooms and sits on 3.5 acres of prime land. The auction has been set for January 22.