Equity Bank places TransCentury, East African Cables under receivership over Sh4.8bn debt
TransCentury Group chief executive and managing director Ng’ang’a Njiinu.
The infrastructure-based investment firm, TransCentury, has been placed under receivership by Equity Bank over a debt estimated at Sh4.8 billion ($34.3 million), months after it missed a Sh2 billion cash call target on its second attempt.
Equity Bank said Muriu Thoithi and George Weru of consultancy firm Price Waterhouse Coppers (PWC) have been appointed joint receivers of TransCentury with effect from June 16, 2023.
"The powers of the receivers extend to all assets and undertakings of the company. Only the Receivers and their representatives are authorised to handle the assets of the company,” the bank said.
“The powers of directors in terms of dealing with the company’s business and assets no longer apply. Any person who purports to hold, receive, use, or attempts to buy or sell, contract or otherwise deal with the assets of the company or with the company without the prior written consent of the receivers will be acting in contravention of the law and will be liable to legal action."
A subsidiary of TransCentury
Equity Bank also appointed Mr Thoithi and Mr Weru as joint administrators of East Africa Cables Limited, a subsidiary of TransCentury.
“With their appointment, the administrators shall now take control over the assets and the management of the affairs of the company,” the bank said about East African Cables.
“The joint administrators are currently engaging all key stakeholders of the company as they seek to achieve the best possible outcome of the current situation in the company,” it said.
