Portland Seeks to sell land to pay lenders.

Loss-making East African Portland Cement Company is seeking approval from shareholders to sell land and pay off 5.4 billion shillings it owes KCB Group Plc.

EAPCC which is Kenya’s oldest cement manufacturer has disclosed it has plans to dispose 2,000 acres of its land after defaulting on obligations for the past two years.This was included in the circular sent to shareholders ahead of this Friday’s AGM to vote on the proposed sale.

The cement maker needs between 20 billion shillings and 28 billion shillings during the next three to five years to clear its debts, refurbish its manufacturing plant and as working capital in the restructuring plan which the Managing Director has been undertaking.

Last month, the firm declared all 800 jobs redundant as part of a plan to cut costs and invited employees to apply for 600 positions under a new staff structure, two weeks ago, the firm declared all managerial posts redundant & the management team was contracted on new contracts. The company expects full-year earnings to drop by more than 25% this year.

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