Cable Manufacture East African Cables has announced that it is in the process of restructuring nearly a fifth of its debts.
In a statement published in the local dailies, the cable manufacturing firm has said it has been in talks with all its lenders and had successfully completed the restructuring of 82 percent of its bank loans.
The listed company further says it has made what it termed as “significant progress” to complete the restructuring of the remaining debts, which include a loan it owes SBM Bank.
The statement comes two days after SBM Bank announced that it had filed a petition in the high court to wind up the firm.
Through its lawyers, Robson Harris and company advocates, the bank indicated that the petition would be mentioned in court on February 4.
The petition to liquidate E.A Cables was filed on January 22, 2020, over Ksh285 million loan
As at December 2018, the company’s current liabilities stood at 4 point 4 billion shillings, four times its current assets which stood at 1 point 1 billion shillings.
Since 2014, the East African cables’ manufacturer has shed nearly 84 percent of its value.
