Consolidated Bank embarks on debt restructuring

consolidated bank Lenders of Consolidated bank and the East African Cables will have to wait longer for the full repayment of their debts.

East African Cables and it’s parent company have announced a debt restructuring deal that pushes the maturity of its 3.5 billion shillings debt by ten years.

Consolidated Bank has announced that maturity of its 2 billion shillings medium-term bond has been pushed forward by three months to allow the National Treasury to inject more capital.

Tran-century which is a multi-sectoral investor in the country has run into financial headwinds in the recent past due to poor investment decisions.

The company burnt billions of shillings when it was part of the concessionaire that was managing the Uganda-Kenya railway line.

The debt re-organization plan has reduced the group’s debt by 44 percent.

The company did not divulge more details on whether its lenders have agreed to the new terms of the loan and what impact it will have on interest rates accumulation.

The Standard Chartered Bank of Kenya is the cable manufacturer’s biggest lender according to the group’s financial report.

Last year, the company announced that it was shopping for a financial consultant to help it in reorganizing its books, after its external auditors KPMG cast doubt on the company’s ability to continue as a going concern.

Elsewhere, Consolidated Bank has announced that its debt maturity has been pushed forward by three months its 2 billion shilling medium-term note to allow national treasury to inject more capital.

The lender says its seven-year bond, which was issued in 2012 to shore up the bank’s capital will now mature on October 22 under the same terms with additional interest payments for the extension.Consolidated Bank is 85 percent owned by the National Treasury, and it is one of the state enterprises earmarked for privatization. Tell Us What You Think

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