survey
Confusion deepens on fate of Dominion farm Next Story
Young entrepreneurs lend glamour to agriculture Previous Story
Today's Paper
You are here  » Home   » Business News

ARM Cement's administrator seeks asset sale to cut debt,

By Reuters | Published Mon, October 22nd 2018 at 16:11, Updated October 22nd 2018 at 16:15 GMT +3

The administrator of Kenya’s debt-laden ARM Cement will ask its creditors for support to keep the company running by selling some of ARM’s assets to cut debt, as well as a plan to engage with financiers for working capital.

George Weru, a co-administrator for the cement firm, told Reuters the proposals will be put to the company’s creditors on Tuesday when they meet to chart the best way forward.

ALSO READ: Banditry hits livestock production in Baringo

The company was put into administration in August by some of its creditors and its shares suspended from the Nairobi bourse. It owes a total of about $190 million to a range of creditors including local commercial banks.

“The level of leverage is significant so what we are seeking to do is to get approval to run a transaction process, aimed at disposing a subsidiary or certain assets to bring cash to reduce the debt,” Weru said.

“In the meantime we recommend that operations are continued and therefore we are also seeking permission to engage financiers for capital.”

He said the company’s production machinery was in need of urgent spare parts while its management needed to be rebuilt, after several key staff left due to its cash flow problems.

Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens. Text the word 'NEWS' to 22840

RELATED TOPICS:

Would you like to get published on Standard Media websites? You can now email us breaking news, story ideas, human interest articles or interesting videos on: [email protected]

RECOMMENDED