East African Portland Cement Company is seeking shareholders’ approval to sell land and offset a KSh 5.4 billion debt it owes KCB Group.
The cement manufacturer arrived at the decision after defaulting on its obligations for the past two years.
East African Portland Cement Company needs between KSh 20 billion and KSh 28 billion in the next three to five years to be able to clear debt, repair the manufacturing plant, and acquire working capital for its restructuring plan.
As part of the restructuring plan, last month the EAPC declared 800 jobs redundant as a way to cut costs. Managerial posts were some of the posts declared redundant during the cost-cutting exercise.
The Cement producer invited employees to re-apply for the job positions under new terms of service.
East Africa Portland Cement expects a drop in its earnings by more than 25% at the end of the financial year.
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