ARM Cement, one of Kenya’s biggest cement manufacturers has been put into administration after its lenders pulled the plug on the company.
Professional services firm PwC has been formally appointed to handle the administration effective 17th August 2018.
“Messrs Muniu Thoiti and George Weru of PricewaterhouseCoopers Ltd have been appointed as Joint admninistrators of ARM Cement PLC……. The primary objective of the administration is to enable an administrator to explore possibility of rescuing the company either as a going concern or for achieving a better outcome for the creditors than would likely be the case if the company were to be liquidated.” Read a statement from PwC.
Talks have been going on for the last few months to try to re-capitalize the company but the creditors who include some banks are understood to have lost patience.
“With their appointment, the Administrators shall now take control of the business assets and the management of the affairs of the company without any personal liability. By virtue of the Administration, the powers of the directors of the company in terms of dealing and/or transacting with the company’s assets have ceased, unless with the express permission of the Administrators.” continued the statement.
This move comes barely a week after the company announced key changes at the board and management level. Linus Gitahi took over as Chairman tasked to ensure a turnaround of the company’s performance as well as restore investor confidence. On the other hand, long serving Chief Executive Pradeep Paunrana stepped down but will remain on the Board according to a letter addressed to the company’s stakeholders.
The joint administrators will continue to trade the business as normal whilst discussions take place with interested parties in an attempt to find a solution. Creditors of the company have been asked to ‘send full particulars of any claims they may have against the company to the undersigned on or before 7th September 2018.’
