January 29, 2020 / 8:25 AM / 21 days ago

East African Cables seeks deal with lender who wants to wind it up

NAIROBI, Jan 29 (Reuters) - East African Cables is seeking to restructure nearly a fifth of its bank debt, including a 285 million shilling ($2.83 million) loan to a local lender that has sought to wind it up over the debt, it said on Wednesday.

The court petition by SBM Bank to unwind the company was first reported by local media on Monday. East African Cables makes electric and telecoms cables sold across East and Central Africa.

Last year, the company and its parent firm restructured 82% of their debts.

“The company... has made significant progress to complete the remaining phase which includes the debt with SBM Bank Kenya Limited,” it said in a statement to the stock market.

East African Cables is part of the TransCentuy Group .

TransCentury, which was founded by a group of Kenyan investors in 1997, invested in a range of infrastructure companies, including East African Cables but has struggled with a heavy debt burden, losses and a plunge in its share price.

The woes followed a series of investments, including an attempt to revive the colonial era Kenya-Uganda railway, which failed and left TransCentury saddled with debt. ($1 = 100.7500 Kenyan shillings) (Reporting by Duncan Miriri, editing by Louise Heavens)

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