Amassment Corporation, a US-based financial company, is seeking to make another try at acquiring the assets of Imperial Bank. This comes after they cited readiness to lower KDIC’s contribution in the acquisition.
Initially, Amassment Corporation wanted to assume all remaining Imperial Bank deposits amounting to KSh49.03 billion. This was then to be followed by an equal face-value amount of loan assets including 50% of the current loans in litigation.
Additionally, it wanted KDIC to contribute cash capital of 20% of what the corporation owes to remaining depositors into the special purpose firm, in order to partially compensate for value declines sustained by loan assets, litigation costs, as well as losses from non-performing loans that the new firm will assume.
However, Kenya Depositors Insurance Corporation (KDIC) turned down the firm’s offer for Imperial Bank assets saying it was below par.
The corporation’s interest in the lender follows KCB’s announcement that it won’t be buying all of Imperial Bank’s assets.
In October 2015, Central Bank placed the lender under receivership. This happened after it emerged that it was operating two sets of books, with a potential fraud of $449 million. This placed depositor funds at risk.
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