Relief for TransCentruy, East African Cables in debt row with Equity Bank

The High Court in Nairobi has granted TransCentury and East African Cables a temporary injunction barring Equity Bank from executing its receivership role in the two firms for a period of 120 days.

Equity Bank has been barred from exercising its rights under the debentures for a period of 120 days from the date of the ruling made October 18, 2024 pending the hearing and determination of the main suit.

TransCentury has been under receivership by Equity Bank since mid-last year over a Ksh 4.8 billion shillings loan owed to the lender. The bank also appointed George Weru as the receiver manager.

East African Cables on the other hand which is a subsidiary of Equity Bank has also been under administration with Geroge Weru and Muniu Thoithi being appointed the administrators of the cables manufacturer.

The ruling also restrained the receivers from acting for a period of 120 days from the date of the ruling.

The Milimani High Court further ruled that 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.