ARM Cement has been placed in administration and Price Waterhouse Coopers (PwC) Muniu Thoithi and George Weru have been named as the Joint Administrators.
ARM Cement had loans with Stanbic Bank Kenya, African Finance Corporation and overdrafts with Barclays, Stanbic, Guaranty Trust and UBA banks. Maweni, its Tanzanian subsidiary, had loans with Eastern and Southern African Trade and Development Bank (PTA Bank), and Development Bank of South Africa and overdrafts with Stanbic and Standard Bank (Mauritius). The financial statements for the year prior to the ARM insolvency noted that the company was not in compliance with financial covenants with AFC, Stanbic, and Aureos.
The company’s shares on the Nairobi Securities Exchange were suspended from trading for 7 days after it was placed in administration. The suspension will take effect from today.
The Nairobi Securities Exchange suspends trading of Athi River Mining Cement shares following the placement of the company under administration. | pic.twitter.com/tWJw8NqJBA
— Sammy Kibet (@sammy_kibet) August 20, 2018
Before the company was placed in administration, Pradeep Paunrana had exited as the company CEO and Linus Gitahi had been appointed as the Chairman alongside other directors from CDC.
The new board later released the following press release.
Official Statement: ARM CEMENT PLC (In Administration) 9 TH FLOOR, THE WESTWOOD, RING ROAD, WESTLANDS P.O. BOX 41908 – 00100 NAIROBI, KENYA
To all shareholders and Stakeholders,
ARM CEMENT PLC (IN ADMINISTRATION) -PRESS RELEASE. _____________________________________________
As the Board, we acknowledge that on 17 August 2018, ARM Cement PLC was placed under administration following an application by the secured lenders. The running of the Company has now been placed in the hands of PwC’s Muniu Thoithi and George Weru, who have been named the Joint Administrators of ARM Cement Plc.
According to the Kenyan Insolvency Act, Administration is a proceeding intended to maintain the company as a going concern. The powers of the Board transfer to the Administrator who owes its duties to the company, and to the court. This is in contrast with receivership, where the Administrator owes duty to creditors.
We support any orderly process that secures the long-term viability of the company and the future of employees, suppliers and other stakeholders and shall lend our support where called upon to ensure that this goal is realized.
By Order of the Board
LINUS GITAHI (Kenyan), PRADEEP H PAUNRANA (Kenyan), JOHN NGUMI (Kenyan), ROHIT ANAND (British) KONSTANTIN MAKAROV (American), SOFIA BIANCHI (Italian),ALIYA SHARIFF (Canadian),THIERRY METRO (French).
TEL: +254 202 692 978 (PILOT LINE) + 254 202 667 675/6 MOB: + 254 733 636 456 EMAIL: INFO@ARMCEMENT.COM WEBSITE: WWW.ARMCEMENT.COM