Equity Bank Kenya has received a major blow from the High Court after its application to have TransCentury PLC Receivership reinstated was dismissed with costs.
“The Defendant’s (Equity Bank) application is without merit and is dismissed with cost,” ruled the High Court.
The dismissal of the Bank application to set aside the injunction provides TransCentury the opportunity to continue with engagements with the Bank to come to an amicable resolution.
“TransCentury will continue making payments to the bank demonstrating commitment to meet obligations,” said a statement from TransCentury.
In June, TransCentury PLC (“TC”) obtained a court injunction in regards to the notice dated 16th June 2023 issued by Equity Bank to appoint a receiver to TC. The injunction took effect immediately.
The injunction was on the basis that Equity Bank illegally appointed a receiver while parties were engaged in negotiations in addition to the brazen breach of procedures set out in the law.
“We are delighted to see that the court has seen the irregularity that marred this very unfortunate and ill-intended process. We viewed the bank as a partner and have been in what we saw as positive discussions to arrive at an amicable agreement just a day before the receiver was appointed by the bank” Said Shaka Kariuki TC Group Chairman on releasing the Injunction announcement in June.
TransCentury Group is an iconic indigenous Kenyan company that has built an unmatched platform and has played a lead role in key sectors of our economy including manufacturing, and construction of infrastructure across the region among others.
At the beginning of this year, 2023, TC embarked on a Rights Issue transaction that aimed at raising funds with the objective of reducing debt and unlocking working capital. The Group has been aggressively working on a turnaround strategy and significant progress has been made on this front.