The future of debt-laden ARM Cement PLC (NSE:ARM) will be determined the end of October, according to a statement by the company’s administrators, PricewaterhouseCoopers (pwc).
The statement announced the first meeting of creditors will take place in Nairobi on 23 October.
ARM Cement was placed under administration in August 2018 to give it an opportunity to recover by keeping away creditors from attaching its property with Muniu Thoiti and George Weru of PwC taking over the management.
Creditors will vote on whether to liquidate it or give it more time to raise new capital.
“To be entitled to vote at the meeting, creditors must have submitted their claim against the company, together with appropriate supporting documentation, to the Joint Administrators,” read part of the notice.
“Creditors must attend the meeting either in person or by way of proxy…Creditors who will not be able to attend the meeting in person or proxy are requested to communicate their decision on the proposals to the Joint Administrators, in writing before October 19.”
The Cement maker’s shares are currently suspended from the Nairobi Securities Exchange (NSE). They last traded at KSh5.5 (82.8%) below the lowest stock option exercise price of KSh32.
ARM’s net losses in the year ended last December 2017 increased by KES 1.2 billion to KES 14.4 billion. The company cited reduced business activity and lower cash generation during the year led to a reduction in net working capital.
Before being placed under administration, the firm in its 2017 Annual Report had indicated that “The Directors have embarked on a financial restructuring plan of the Group which includes equity injection and replacement of the expensive short-term loans with long-term loan facilities.”