Struggling fashion retailer Deacons East Africa (East Africa) PLC (Under Administration) has called for an extraordinary meeting of shareholders in March to raise Kshs 450 Million required to settle the Company’s outstanding creditors and secured lenders.
Through an order from the Joint Administrators (PKF) the meeting will be held on Tuesday, 05 March 2019.
J.L.G Maonga, Company Secretary Deacons, said one of the key agenda items will be “To consider and, if thought fit, to pass the following Ordinary Resolution:
“That in order for the Company to raise the amount of up to Kenya Shillings Four Hundred and Fifty Million (Kshs 450 Million) which is required to settle the Company’s outstanding creditors and secured lenders, and to utilize the balance towards the working capital requirements of the Company, the Joint Administrators be and are hereby generally and unconditionally authorised to exercise the borrowing powers of the Company to raise the required funds in the form of convertible loan(s) from any person(s) willing to lend or grant such funds to the Company on such terms and conditions as shall be agreed between the parties, subject to obtaining all the required regulatory approvals.”
Currently, its shares have been suspended from the Nairobi Securities Exchange until 30 November 2019 following a proposal from the joint administrators to appoint an Independent Transaction Adviser, subject to the company trading at a profit by September 30, 2019.