East African Cables administration halted
Equity Bank has been barred from assigning an administrator to East African Cables. The injunction is based on the fact that while the parties were in negotiations, Equity Bank went ahead to appoint an administrator.
“I am glad that the brief setback that this unfortunate action had brought to the business is behind us and we can now focus on what we do best, providing quality cables to our customers across the region Said Dr. M. G Waweru on receiving the injunction.
Just one day prior, sister firm TransCentury got a similar injunction after Equity Group announced Messrs. Muniu Thoithi and George Weru from PricewaterhouseCoopers (PwC) as joint receivers and managers, effective June 16.
“The purpose of this is to notify all interested stakeholders that following Receiver’s appointment, the affairs and business of the company shall be directed by the receiver,” PwC said in a statement, adding “The powers of the receiver extend to all assets and undertakings of the company.”
Read also: Bankruptcy takeovers are triggering wider corporate concerns
Transcentury and the East African Cables were placed under receivership and administration by Equity Bank as a result of their default on a Kes3.01 billion loan.
We have been on what we viewed as positive discussions with the bank up until a day before the appointment of the administrator, therefore the extreme and unfortunate action taken by the bank came to us as a surprise, added Dr. Waweru.
East African Cables sells power goods to homes, businesses, and public areas. In addition to working with a large network of electricians, merchants, distributors, and consultants in the business ecosystem, the organization has over 200 workers in Kenya and Tanzania.
