Equity Bank has been ordered to stay away by the High Court after it placed Transcentury and the East African Cables under receivership and administration for defaulting on KSh3.01 billion.
In a statement issued Monday, TransCentury PLC said the injunction is on the basis that Equity Bank ” illegally appointed a receiver while parties were engaged in negotiations in addition to the brazen breach of procedures set out in the law.”
The injunction puts a stop to the appointment of the receivers and restrains them or their agents from performing any actions in the capacity of receivers of the company.
“This will allow TC to return to focusing on the business operation and achieving the strategy,” reads part of the statement.
An injunction is a court order requiring a person to do or cease doing a specific action.
“We are delighted to see that the court has seen the irregularity that marred this very unfortunate and ill-intended process. We viewed the bank as a partner and have been in what we saw as positive discussions to arrive at an amicable agreement just a day before the receiver was appointed by the bank,” Said Shaka Kariuki TC Group Chairman.