Creditors of indebted ARM Cement have approved the sale of one of its subsidiaries to reduce its debt according to the company’s administrators, PricewaterhouseCoopers (pwc).
In their first meeting of creditors that took place in Nairobi on 23 October, Muniu Thoithi, one of the co-administrators from PwC as reported by Reuters, said 102 creditors, collectively owed KSh9.6 billion approved the proposal with two creditors, together owed Ksh 87,000 rejecting.
ARM Cement owes creditors more than Ksh 12.5 billion.
Bloomberg reported that there are 11 potential investors who have shown interest in participating in ARM’s recapitalization, according to George Weru, an administrator at PwC with Johannesburg-based Absa Group Ltd. has been appointed as a strategic adviser.
ARM Cement was placed under administration in August 2018. Also, its shares are currently suspended from the Nairobi Securities Exchange (NSE).