NAIROBI, Kenya, Oct 19 – The Milimani High Court has granted a 120-day temporary injunction to TransCentury Plc in its case against Equity Bank. The injunction was issued on Friday by Justice Alfred Mabeya.
During this period, Equity Bank will be restrained from exercising its rights under the debentures, a loan agreement that provides the bank with security over TransCentury’s assets.
TransCentury will be required to repay its debt during the 120-day period, while the receivership process will continue.
“A temporary injunction restraining the Bank from exercising its rights under the debentures for 120 days from the date of the ruling,” the notice stated.
“The receivers shall also be restrained from acting for 120 days from the date of the ruling,” it added
If TransCentury fails to settle the debt within this time, the bank’s right to realize the securities will take effect.
“The injunction shall lapse 120 days from the date of the ruling if the debt is not paid, and the bank’s consequential right to realize the securities shall accrue,” the statement concluded.
