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Regional cables firm restructures, reduces debt by 44pc

Wednesday, August 21st, 2019 00:00 | By
Regional cables. Photo/Courtesy

The East African Cables has restructured its short-term loans into a 10-year term loan and also secured a two-year moratorium on the principal debt to enable the company to operate effectively.

 The debt deal has reduced the group’s debt by Sh1.65 billion or 44 per cent of the group’s total and offered a 10-year extension to the tenure of remaining debts.

This comes after the cable manufacturer hired a consultant to help in spacing out its Sh3.06 billion debts to provide it with a debt relief on the repayment schedule on the short term loans.

 “We have managed to restructure our short-term loans into a 10-year term loan including a two-year moratorium on principal debt to allow the company space to repay and operate effectively,” EAC chief executive officer  Paul Muigai told the media in his office yesterday. 

 He said the debt burden has now been resolved and all the generated revenues will be assigned to production with the focus being on retail where the firm’s brand is strong.

 He added that the company intends to focus on strengthening the brand through marketing activities and improving customer experience.

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