Investment firm, TransCentury PLC has been placed under administration over a KSh4.8 billion loan owed to Equity Bank Group.
PricewaterhouseCoopers (PwC) has taken over the management of the firm and its subsidiary, East African Cables.
“The placement of TransCentury into receivership was occasioned by the company’s continued failure to meet its financial obligations to Equity Bank after advancement of certain loan facilities to the company in 2013,” said PwC in the statement.
“The company’s obligations to the bank currently stand at circa $34.3 million. The bank, therefore, exercised its powers under its securities by appointing the receivers to take control of the business and assets of TransCentury and recover the monies owed to the bank, in accordance with relevant legislation and regulations.”
A secured creditor can use a receivership to recover outstanding amounts under a secured loan if the company defaults on its loan payments.
TransCentury PLC is headquartered in Kenya and focuses on infrastructure, specifically the energy, transport, water, industrial, and agriculture sectors.
In the year, TransCentury missed the target in its bid to raise KSh2 billion through a rights issue after a low shareholder subscription. The firm managed to raise KSh828.1 million, a 40.13 per cent subscription from the uptake of 752.8 million new shares.
Private equity firm Kuramo Capital, which held a 25 per cent stake in the company, opted to convert part of its KSh1.9 billion in loans extended to TransCentury to pay for its portion of the rights issue.
TC is listed on the Nairobi Securities Exchange (NSE) and has investments across East, Central and Southern Africa.
