East African Cables is experiencing financial woes. Recently, SBM bank filed a petition to liquidate the company after it failed to pay a loan of Sh. 285m.
E A cables is the biggest manufacturer of electric wires and is owned by TransCentury Limited. They have two factories, one in Nairobi and another one Dar es Salaam.
Transcentury has also been experiencing financial turbulence as a result of debts.
East African Cables is known for producing quality products. However, with cheap imports from China, the fall in sales and revenue levels have negatively affected the company. Counterfeit cables bearing the logo of East African Cables are sold in the market at low prices.
A notice issued by SBM Bank to East African Cables reads as follows.
“Notice is hereby given that a creditor’s petition for the liquidation of the above-mentioned company by the High Court was on the December 9, 2019 presented to the said court by SBM Bank Kenya Ltd,” said a notice issued by SBM’s lawyers.
The share price has dived to a 6-month low price of 2.37.
SBM bank has further invited parties in support or against the petition to send representatives on the 4th of February to the High Court when the case will be mentioned.