A commercial court gave two investment companies extra time to pay back $5 billion they owe Equity Bank. Justice Francis Gikonyo decided East Africa Cables Limited and TransCentury could have 90 additional days to clear their debt. Last October, Justice Alfred Mabeya had already given these companies 120 days because they seemed serious about paying. The companies asked for more time this February when they couldn't meet that deadline.
Their lawyer, Philip Nyachoti, told the court they worked hard to find money to pay off what they owed. He explained that since October, both companies have created plans and systems aimed at paying their debt. They talked to many financial groups looking for help, including a company based in the Cayman Islands called TLG, which agreed to provide funds. The lawyer said they missed the first deadline because the deal was complicated, and Christmas vacation slowed everything down.
According to documents the lawyer showed in court, TLG needs three more months to check everything before giving the money. The other side argued these companies failed to show any new evidence that justified more time. Justice Gikonyo listened to both sides before approving the request from the investment firms. He said courts must balance fairness between large companies and their creditors to avoid causing harm.
The judge looked at bank statements proving the companies had already paid some money toward their debt. He saw this as a sign East African Cables genuinely wanted to pay. He also believed their claim that talks with TLG were moving forward. The judge said these aren't borrowers trying to escape what they owe – they just need time to reorganize. He worried putting them under administration right away would stop these negotiations and scare away investors. He decided a 90-day extension would cause less damage than the alternatives.
Their lawyer, Philip Nyachoti, told the court they worked hard to find money to pay off what they owed. He explained that since October, both companies have created plans and systems aimed at paying their debt. They talked to many financial groups looking for help, including a company based in the Cayman Islands called TLG, which agreed to provide funds. The lawyer said they missed the first deadline because the deal was complicated, and Christmas vacation slowed everything down.
According to documents the lawyer showed in court, TLG needs three more months to check everything before giving the money. The other side argued these companies failed to show any new evidence that justified more time. Justice Gikonyo listened to both sides before approving the request from the investment firms. He said courts must balance fairness between large companies and their creditors to avoid causing harm.
The judge looked at bank statements proving the companies had already paid some money toward their debt. He saw this as a sign East African Cables genuinely wanted to pay. He also believed their claim that talks with TLG were moving forward. The judge said these aren't borrowers trying to escape what they owe – they just need time to reorganize. He worried putting them under administration right away would stop these negotiations and scare away investors. He decided a 90-day extension would cause less damage than the alternatives.
