East African Cables, SBM Agree on $2.85 Million Debt Restructuring

In January 2020, the media reported a court petition by the State Bank of Mauritius (SBM) to liquidate the East African Cables over a $2.85 million (Ksh285 million) debt, Ventures Africa reported. However, the two parties have reached an agreement, recently, on the restructuring of the $2.85 million (Ksh285 million) debt that is due and payable on demand. “The withdrawal of the petition is a significant step towards the company’s turnaround plan that includes strengthening of the balance sheet, operational improvement and having the right funding structure for growth and profitability,” said Virginia Ndunge, the Company’s Secretary. She added that the new arrangement involves a restructuring of the outstanding facilities by the bank under a new long term facility and security arrangement. This would give the indebted cable maker a lifeline in its recovery efforts. Read more