Athi River Mining Cement Plc will continue to serve suspension at the Nairobi Securities Exchange for another 21 working days. The extension follows the placement of the company under administration pursuant to section 534(1) of the Insolvency Act, 2015.
In a notice from the Nairobi bourse, the extension of the suspension was issued by the Capital Markets Authority (CMA) pursuant to Regulation 22(2) of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations, 2002.
“There are key milestones in the ongoing administrative process which will involve the company releasing certain reports and holding certain creditor meetings.” Capital Markets Authority CEO Mr Paul Muthaura told Kenyan Wallstreet in a phone interview. “We are giving them the 21 days to complete that process so that everyone can get a better picture of the state of ARM and the expected way forward with regard to the company.’’
He further added that the regulator will be waiting for a full report from the administrators to get adequate information that will inform on future direction of the company.
ARM had been suspended from the NSE in August following the company’s placement under administration in a move aimed at giving the debt-laden firm a lifeline to recover, by keeping away creditors from attaching its property.
This follows reports indicating that ARM Cement’s Kigali plant will be auctioned for the second time to pay off a debt after it halted the first auction through a court injunction