State Bank of Mauritius (SBM) Kenya has this afternoon filled an application at the High Courts requesting to Liquidate the assets of listed firm, East African Cables Plc.
In court fillings through their advocates, Robinson Harris & Company, SBM states that it believes beyond reasonable doubt that East African Cables is insolvent and will not pay the loans it owes the firm.
In October 2019, Equity Bank took over a total of Sh2 billion worth of loans that had been advanced to East African Cables by various lenders, including Standard Chartered Bank (Kenya) and Ecobank Kenya Limited through an arrangement by it’s parent firm TransCentury Plc. Equity Bank had provided Kes 1.6 billion that was used to settle StanChart claims.
StanChart wrote off Sh1.5 billion and opted to walk away from the debt-ridden firm with the Sh1.6 billion
