Investment Holding company TransCentury has obtained a court injunction restraining Equity Bank from appointing receivers to manage the affairs of the Nairobi Securities Exchange listed firm over unpaid loans.
In a statement, TransCentury says the injunction is on the basis that the bank illegally appointed a receiver while parties were engaged in negotiations.
“We are delighted to see that the court has seen the irregularity that marred this very unfortunate and ill intended process. We viewed the bank as a partner and have been in what we saw as positive discussions to arrive at an amicable agreement just a day before the receiver was appointed by the bank,” said Shaka Kariuki TC Group Chairman on releasing the Injunction announcement.
TransCentury has interests in the cable business
“TransCentury is a significant business in Kenya’s economic landscape, we are committed to meeting our obligation, and hence the reason why we embarked on a Rights Issue transaction at the beginning of the year. Despite the challenging economic environment that Kenya and the world at large faces, we raised money from our shareholders and were preparing to settle on an agreement favorable to the business and the bank,” added Mr Kariuki.
The injunction puts a stop to the appointment of the receivers and restrains them or their agents from performing any actions in the capacity of receivers of the company. This will allow TC to return to focusing on the business operation and achieving the strategy.
JOINT RECEIVERS
In a public notice, Equity Bank appointed Muniu Thoithi and George Weru of PriceWaterhouseCoopers as joint receivers and managers of TransCentury effective June 16.
The bank also appointed Muniu Thoithi and George Weru as joint administrators of East African Cables (EAC Kenya), a subsidiary of TransCentury.
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