FILE PHOTO | NMG
East African Cables #ticker:CABL has reached a loan restructure agreement with SBM Bank Kenya, a move that has seen the lender retreat from its move to liquidate the Nairobi Securities Exchange-listed firm over a Sh285 million debt.
“East African Cables Plc is pleased to announce that the company has reached a debt settlement and restructure agreement with SBM Bank Kenya Limited resulting in withdrawal of the liquidation petition against the company,” EA Cables said in a statement.
Ecobank Kenya in February appointed a receiver manager to take over certain assets of the cables manufacturer, which had stopped servicing a Sh161 million loan from the lender.
EA Cables is part of a group of companies owned by investment firm TransCentury #ticker:TCL and which have struggled to pay various creditors including bondholders and banks.
EA Cables took new loans from Equity Bank #ticker:EQTY and used the amounts to pay off StanChart #ticker:SCBK.