Ecobank will now be the only lender that places East African Cables under liquidation. This is after the court barred SBM bank from joining the suit, citing that its is an unsecured creditor, therefore, has no interest in the firm’s property.
Ecobank was the first to file a suit against the cable manufacturer, seeking to recover a KSh190 million loan. Thereafter, SBM bank wanted to join the suit, in an attempt to recover their own KSh285 million loan.
I therefore find and hold that SBM has not established a legally recognised interest in these proceedings. There are no common issues of law and fact and interest in relief…hence, SBM cannot be joined to these proceedings.Justice David Majanja’s Ruling Reads in Part
East African Cables allegedly owes Ecobank KSh350 million, in form of banking facilities obtained in 2011 and 2013.
East African Cables is a premier cable manufacturer, with a footprint across East and Central Africa. The company has four manufacturing facilities; two in Nairobi, Kenya, one in Dar es Salaam Tanzania and one in Eastern DRC. In addition, EA Cables is present in Uganda, Rwanda, Burundi, Southern Sudan and Ethiopia, through a distribution network.
EA Cables manufactures an extensive range of cables for applications in domestic and Industrial lighting, as well as transmission and distribution of electricity. The company also offers Data, Telecommunication and Fiber Optic solutions with requisite accessories.