EA Cables reports that it has reached a debt settlement and restructuring agreement with SBM Bank Kenya resulting in the withdrawal of the liquidation petition.
The agreement involves a restructuring of the outstanding debt owed to the bank under a new long-term facility and security arrangement.
SBM had moved to court seeking to join a suit by Ecobank in an attempt to recover a KSh285 million loan issued to the cables company. Ecobank was the first to file a suit against the cable manufacturer, seeking to recover a KSh190 million loan.
In March 2020, EA Cables relinquished its assets to Ecobank, after it failed to repay loans worth KSh350 million, in form of banking facilities obtained in 2011 and 2013.
EA Cables lauded the move by SBM saying that it shows renewed lenders’ confidence in the company.
East African Cables is a premier cable manufacturer, with a footprint 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, EA Cables is present in Uganda, Rwanda, Burundi, Southern Sudan and Ethiopia, through a distribution network.