NAIROBI, Kenya, June 17 – Equity Bank has placed Transcentury and the East African Cables under receivership and administration for defaulting on Sh3.01 billion.
In a notice on local dailies, the lender appointed Messrs Muniu Thoithi and George Weru from PricewaterhouseCoopers (PwC) as joint receivers and managers, effective yesterday.
Thoithi is a specialist in forensics and business recovery services at PwC.
“The purpose of this is to notify all interested stakeholders that following Receiver’s appointment, the affairs and business of the company shall be directed by the receiver,” PwC said in a statement.
“The powers of the receiver extends to all assets and undertakings of the company,” it added.
The notice also said that the receiver and manager’s representatives are authorized to deal with the assets of the company.
“The Power of Directors in terms of dealing with the company’s business and assets no longer apply,” it stated.
“Any person who purports to hold, receive, use, or attempts to buy, sell, contract, or otherwise deal with the assets of the company or with the company without the prior written consent of the Receivers will be acting in contravention of the law and will be liable to legal action.”
By being placed under receivership, this signals Equity’s target to settle bad debt.
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