The High Court has barred Equity Bank from proceeding with a planned takeover of East African Cables over pending debt.
Equity Bank through a notice dated June 16, 2023 had appointed an administrator to East African Cables over a Ksh 4.8 billion debt owed by EA Cables parent company TransCentury, prompting the electricity cables and conductors manufacturers to seek legal interventions.
“I am glad that the brief setback that this unfortunate action had brought to the business is behind us and we can now focus on what we do best, providing quality cables to our customers across the region,” said Dr. Michael Waweru EA Cables Chairman.
EAC obtained the injunction on the basis that the bank appointed an administrator while parties were engaged in negotiations.
“We have been on what we viewed as positive discussions with the bank up until a day before the appointment of the administrator, therefore the extreme and unfortunate action taken by the bank came to us as a surprise. EAC is a renowned and astute business and we’ve been committed to meeting our obligations and continue to do so despite the prevailing challenging macro environment,” added Dr. Waweru.
According EA Cables, the injunction which now puts to a stop to the appointment of the administrator and restrains the lender or their agents from performing any actions in the capacity of administrator of the company will allow the manufacturer to return to focusing on the business operation and strategy.
“East African Cables is the undisputed number one cable brand in the region, we have built an admired brand that is powering nearly all homesteads, factories, streets in this country and beyond. We are synonymous with the electrification success of this country and are confident of our business model and the unwavering support from our customers, staff and shareholders. We are delighted to resume serving our customers in every corner of our country,” stated Paul Muigai, EAC Chief Executive Officer.