A Kenyan-based investment firm, TransCentury has agreed to renegotiate the Sh2.4 billion loan it owes to a number of banks in a bid to reduce pressures on its cash flows.
The investment firm is said to have secured loans to the tune of Sh5 billion from local banks including Equity Bank, Chase Bank, and Standard Chartered Bank (Tanzania).
About half of the total sum owed to these Banks was due to be repaid in 2016. But TransCentury had to contend with another loan; an Sh8 billion debt in the form of a convertible bond, according to Business Daily Africa.
“During the year, the company and its subsidiaries renegotiated with its lenders to extended repayment of borrowings amounting to Sh2.4 billion which were initially due in 2016, to be repaid in 2017,” TransCentury explained in its annual report.
TransCentury is currently in discussions with the lenders to restructure its debt and negotiate a new payment plan.