TransCentury Plc was placed under administration after Equity Bank Kenya turned down a request to cancel more than Sh2.8 billion ($20 million) in debt due by the company.
This was a shocking turn of events for what was once Kenya’s most promising publicly traded investment company.
Equity has appointed receivership over its subsidiary East African Cables Limited, dealing a twin blow to TransCentury, which recently experienced a failed rights offering.
The facility underwent a refinancing in May 2018 with a lump sum payment of Sh1.399 billion ($10 million) due on October 31, 2018, and the remaining balance to be paid over four years. As of the end of December 2021, East African Cables had Sh1.814 billion in unpaid obligations from an equity facility.
Eastern and Modern African Cables booked net losses of Sh1.682 billion and Sh299.72 million as of the end of December 2021.