There has been reprieve for troubled Athi River Mining (ARM) Cement to surface out of bad debt after its creditors approved the sell of one of its subsidiaries to cut debt.
Muniu Thoithi, one of the co-administrators from PricewaterhouseCoopers (PwC), said 102 creditors, collectively owed 9.6 billion shillings ($95 million), had backed the proposal as reported by The Standard.
Two creditors, together owed 87,000 shillings, rejected the plan, he said.
The company was put into administration in August by some of its creditors and its shares suspended from the Nairobi bourse.
It owes a total of about $190 million to a range of creditors including local commercial banks.
The creditors did not identify which subsidiary would be sold, or its possible value.
The company, once Kenya’s second-largest cement maker behind LafargeHolcim’s Bamburi Cement, has seen its market share plunge to just 10 percent after the clinker plant it built in Tanzania in 2014 failed to generate income.
It also has a plant in Rwanda.