East African Cables has obtained a court injunction stopping the appointment of an administrator to the firm, in a notice issued by Equity Group, dated 16th June 2023.
This move has been made by the firm to calm the nerves of its shareholders, partners and the general investing public, concerning its future.
This court order is on the basis that Equity Group appointed an administrator while the parties involved were still struck in negotiations.
East African Cables said in a statement that the unfortunate occurrence that the business had encountered was now in the rear mirror and that East African Cables would not focus its attention on providing quality products to clients in the region.
East African Cables has been negotiating with Equity
The cable manufacturer is said to have been locked in discussions with Equity, in what it says was a surprise move by the lender to pull the rag under its feet.
East African Cables insists that it is a reputable business that is keen to meet all its obligations despite the harsh and challenging business environment in which it currently finds itself.
The court injunction brings to a screeching halt, the appointment of the administrator and restrains them or their agents from performing any actions in the capacity of administrator of the company. This will allow EAC to return to focusing on the business operation and strategy.
East African Cables is a household name as the largest electrical cable manufacturing firm in East and Central Africa.
For the past 17 years, EAC has driven electrification in the region by connecting homes, factories and other users to the national grid. The conglomerate has operations in both Kenya and Tanzania with over 200 employees and a wide network of partners that include, distributors, consultants and traders.
“East African Cables is the undisputed number one cable brand in the region, we have built an admired brand that is powering nearly all homesteads, factories, streets in this country and beyond. We are synonymous with the electrification success of this country and are confident of our business model and the unwavering support from our customers, staff and shareholders. We are delighted to resume serving our customers in every corner of our country,” said East African Cables CEO Paul Muigai.
ALSO READ: Relief for TransCentury as Court Issues Injunction Over Receivership Notice
