The capital Market Authority (CMA) has yet again extended the suspension of trading of Athi River Mining Cement PLC (ARM) for a further 75 working day.
The extension comes after the expiry of yet another 21 days suspension issued in September that was meant to give ARM time complete certain creditor meetings as part of a process that was to give a better picture of the state of ARM according to the regulator.
“The extension of suspension was issued by the Capital Markets Authority pursuant to Regulation 22(2) (b) of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 200,” the Nairobi Securities Exchange said in a notice.
This follows the placement of the company under administration in Augustafter its lenders pulled the plug on the company.
Furthermore the extension seems to show that the regulator lacks faith that a turnaround would be happening soon, but rather pessimistic that ARM problems could take longer to resolve, resulting in the 2015 Insolvency act which gives companies going through financial problems a lifeline to put their act together and allowing them to continue operating instead of immediate closure.