Cable manufacturer, EA Cables, has relinquished its assets to Ecobank, after it failed to repay loans worth KSh350 million, in form of banking facilities obtained in 2011 and 2013.
With this, therefore, Ecobank has appointed Kereto Marima as the receiver manager, tasked with custody of the company’s plant and machinery.
The value of the assets has not been disclosed. Ecobank is not the only lender affected by EA Cables’ inability to repay loans. SBM bank, also filed a suit seeking to liquidate the firm over unpaid loans amounting to KSh285 million. However, the court barred SBM from the suit, terming them an unsecured creditor.
East African Cables is a premier cable manufacturer, with a footprint that spreads 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, EAC is present in Uganda, Rwanda, Burundi, Southern Sudan and Ethiopia, through a distribution network.