Athi River Mining Cement PLC currently undergoing liquidation has issued a notice to its creditors, informing them of an upcoming meeting as per the provisions of the Insolvency Act 2015 of Kenya.
The company, entered administration on August 17, 2018 after defaulting on a loan it owed to United Bank of Africa.
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After two years of administration failed to revive the company it was subsequently put into liquidation on October 1, 2021.
Following liquidation, the company is mandated to convene a creditors’ meeting if its liquidation continues for a period of twelve months or more. With the purpose being to account of the liquidator’s actions and the conduct of the liquidation during the preceding year.
In adherence to this regulation, ARM Cement has scheduled the second Meeting of the Creditors, to be held virtually on Wednesday, November 15, 2023, from 10:06 a.m. to 12:00 p.m. EAT.
Creditors wishing to participate in the meeting must follow the registration process outlined in the notice.
When the liquidation was first announced the administrators expected the secured creditors of ARM to recover between 34 percent and 70 percent while the unsecured creditors were expected to recover between 1.8 percent and 6.5 percent from the sale of the company’s assets.
Since 2019 the administrators have completed the sale of all cement and non-cement assets and the business of ARM Cement PLC in Kenya to National Cement Company Ltd owned by the Devki group of companies for USD 50 million.
In 2022 , they also sold all the shares ARM held in Maweni Limestone Ltd, its Tanzanian subsidiary, to Huaxin Cement Co. Ltd through its subsidiaries Huaxin (Hong Kong) International Holdings Ltd and Huaxin (Tanzania) Investment Ltd for a capital injection of USD 116 million.
The Tanzanian government subsequently imposed a USD 22 million capital gains tax which the company has contested.
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The cement maker which was once the largest in the region collapsed after sustained mismanagement of the business by its former directors. Its financial mismanagement led to ARM accumulating KES 32.07 billion in debt which the company could not clear leading to the current liquidation process.
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