TransCentury Plc has received a temporary injunction from the High Court barring Equity Bank from appointing a receiver manager to oversee the firm’s operations.
The Nairobi Securities Exchange (NSE) listed investment company was placed under receivership by the lender over unpaid debt.
In a statement, TransCentury Group chairman Shaka Kariuki said the lender illegally appointed a receiver while negotiations between the parties were ongoing contrary to set out rules.
“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 Kariuki.
TransCentury informed its shareholders that it obtained a court injunction on June, 16 2023 barring the lender from proceeding with the appointment of a receiver manager.
Kariuki said the investment firm is still committed to meeting its obligations, having 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,” he added.
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.
TC says this will allow it to return to focusing on the business operation and achieving the strategy.
“TC Group is steered by a very resilient team and I am confident that we shall recover the time lost as we continue focusing on our mandate of impacting Africa with transformative infrastructure,” stated Nganga Njiinu, TransCentury Group CEO.
TC which is an investor in energy, transport, water, industrial, and agriculture sectors is eying the Rights Issue to raise funds to be used to pay off remaining debt and access a working capital.