According to the administrators, the company’s total claims stand at $154.14 million, comprising preferential creditors ($2.88 million), secured creditors ($71.06 million) and unsecured creditors ($80.2 million).
Additional recoveries have been made possible through a resolution of a $23 million capital gains tax (CGT) dispute with the Tanzania Revenue Authority (TRA) with respect to the sale of Maweni Limestone Ltd.
The new Insolvency Act (2015) allows financially distressed companies to go through an administration process to explore possible ways of recovery before being pushed into liquidation.
The life of the ailing cement manufacturer ARM Cement will be brought to an end this week (September 30) when the joint administrators commence winding up the company to pay off outstanding claims estimated at $103.82 million.
The joint administrators — George Weru and Muniu Thoithi of PricewaterhoueCoopers (PWC) — said in a circular to the creditors dated September 21 that their mandate of the administration of the company is set to end on September 30 in line with a court order dated September 9.
“The next course of action will be the immediate commencement of the liquidation of the company in line with the administrators’ proposals as approved by the company’s creditors on October 23, 2018 and in line with the provision of the Insolvency Act, 2015 of Kenya,” they said.
“The joint administrators will transition into the role of joint liquidators of the company and will continue to pursue an orderly wind-up of the affairs of the company and its subsidiaries.”
According to the administrators, the company’s total claims stand at $154.14 million, comprising preferential creditors ($2.88 million), secured creditors ($71.06 million) and unsecured creditors ($80.2 million).
However, so far total claims paid out stand at $50.32 million comprising preferential creditors ($2.88 million),secured creditors ($42.63 million) and unsecured creditors ($4.81) million.
Additional recoveries have been made possible through a resolution of a $23 million capital gains tax (CGT) dispute with the Tanzania Revenue Authority (TRA) with respect to the sale of Maweni Limestone Ltd.
According to the circular, ARM’s tax liability with respect to this transaction (Maweni) was reduced to $4 million from $23 million following negotiations with the Tanzanian tax authority.As a result, the total surplus (after settlement of all Maweni liabilities and costs of realisation) arising from the sale of Maweni business which is available for distribution to the ARM creditors next month (October) stands at $21 million.These funds will be distributed to ARM’s secured and […]