TransCentury PLC Moves Closer To Resolving Equity Bank Standoff Through Court-Supervised Debt Restructuring

Nairobi Securities Exchange-listed infrastructure investment holding company, TransCentury PLC, and its subsidiary East African Cables, have confirmed they are at an advanced stage of their debt restructuring process with Equity Bank, signaling renewed hope for the resolution of a prolonged financial impasse.

In a holding statement released to the public, TransCentury PLC acknowledged recent developments in its ongoing engagement with Equity Bank and reaffirmed its commitment to achieving a resolution that safeguards the interests of shareholders, employees, creditors, and the broader market.

“The Group has made significant progress in its debt restructuring plan, which includes initiatives to settle the debt with potential investors,” the company stated. “We are confident that the progress made—which is at the tail end—will yield a resolution that’s in the interests of our shareholders, financiers, employees, partners, and the broader market,” said TransCentury in a statement.

The statement comes against the backdrop of recent legal and financial challenges between the investment group and Equity Bank, one of Kenya’s largest financial institutions.

Though specific details of the dispute remain under wraps due to ongoing court proceedings, market observers and industry stakeholders have been closely watching the situation, concerned about its implications for listed entities, creditors, and investor confidence on the bourse.

According to the statement, the Group filed an application in court on June 16, 2025, seeking directions on the matter. The court has set the hearing for Friday, June 20, 2025, a date that could be pivotal in unlocking a much-needed breakthrough in the debt negotiations.

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In a move designed to instill confidence among its stakeholders and the broader financial community, TransCentury emphasized that it is fully engaged in a court-supervised process, working collaboratively with all relevant stakeholders.

“We wish to affirm that the Group remains committed to resolving this matter constructively and lawfully. We are fully engaged in a court-supervised process and are working closely with all relevant stakeholders, including our creditors and potential financiers, to ensure a sustainable and mutually beneficial outcome,” the company noted.

The decision to seek court supervision indicates the seriousness of the restructuring effort and suggests that the Group is seeking a comprehensive, legally sound resolution rather than a piecemeal or reactive approach. Legal analysts say this path can offer a structured way of balancing competing interests while ensuring that any resolutions reached are enforceable and transparent.

TransCentury PLC, known for its investments in infrastructure, engineering, and power sectors, has in recent years grappled with mounting debt and restructuring hurdles. However, the current update suggests that new investor interest and capital injection prospects are in play, possibly heralding a turning point.

Although the company stopped short of disclosing who the potential financiers are, sources familiar with the matter suggest that at least two foreign investment firms and a local financial intermediary have expressed interest in backing the restructuring plan.

If successful, the plan could breathe new life into a company that was once considered one of Kenya’s most ambitious and visionary investment groups. TransCentury’s performance has been significantly affected by legacy debt, operational challenges, and shifting investor sentiment. A successful restructuring could restore market confidence and stabilize the company’s operations.

The Nairobi Securities Exchange (NSE) has been relatively calm in the wake of the announcement, though some analysts expect increased activity once a court decision is made. Shareholders and market watchers are keen to see how the court-supervised process will affect the Group’s long-term viability.

“We appreciate the transparency the Group is now showing. This gives stakeholders a measure of comfort that they are not being blindsided,” said one local financial analyst, speaking anonymously. “The court-supervised path allows for a more transparent and fair process for all parties involved.”

Employees and suppliers, some of whom have faced payment delays amid the company’s cash flow constraints, are hopeful that the restructuring process will result in more stability. The Group’s statement concluded with gratitude toward stakeholders for their “continued patience and support,” underscoring the challenges faced over the past months.

With the court hearing set for June 20, the market awaits an update that could clarify the company’s future. Whether the outcome will be a court-approved reorganization plan, a new financier stepping in, or a settlement agreement with Equity Bank remains to be seen.

As the company noted, “As this matter is currently before the court, we are limited in the details we can share at this time. We will provide further updates as soon as we are in a position to do so.”

Whatever the outcome, the developments this week suggest that TransCentury and East African Cables are fighting hard for a turnaround, and their next moves could determine whether the once high-flying investment group regains its footing or faces a more difficult path ahead.

For now, all eyes are on the courtroom.

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