TransCentury Plc through Advocate Phillip Nyachoti has secured a temporary reprieve after the High Court issued an order prohibiting Equity Bank from appointing a receiver manager for the investment firm.
The court’s ruling gives TransCentury a 90-day window to manage its debt commitments, prohibiting the bank from using its debenture rights to take over the company’s management during that time.
However, the court stressed that if TransCentury fails to settle its outstanding debt within 90 days, Equity Bank may use its rights under the debenture, including appointing a receiver or receiver-manager.
Despite the temporary relief, TransCentury remains responsible for continuing its debt repayments.
Phillip Nyachoti, the lawyer representing TransCentury, informed the court that the company is actively pursuing financial support to settle its obligations.
He explained that TransCentury, as a holding company, is working to secure funding not only for itself but also for its subsidiaries, including East African Cables PLC.
Nyachoti further disclosed that TLG, a potential financier, has expressed its commitment to cover all debts for TransCentury and its subsidiaries, according to a letter dated February 3, 2025. He emphasized that an extension is necessary to provide TLG sufficient time to complete its due diligence process, given the substantial size and complexity of the debt.
“The plaintiff is only seeking an extension of time to pay, which does not affect the defendant’s ability to hold security. No prejudice has been demonstrated, and the plaintiff has opted for a review of the court’s previous order instead of an appeal,” Nyachoti submitted.
TransCentury also argued that appointing a receiver-manager would not improve its financial situation but would instead disrupt ongoing operations and multibillion-shilling projects that could generate additional funds for debt settlement.
