Equity takes over loss-making cable manufacturer’s $20m loan

The East African Cables is struggling with a huge debt portfolio. PHOTO | FILE | NMG

Equity Group Holdings (EGH) Ltd has taken over more than $20 million worth of loans owed by the loss making East African Cables Ltd in a major debt restructuring plan aimed at returning the manufacturer to a strong financial footing.

The restructuring will result in the refinancing of East African Cables existing debt over a longer period to allow it plough back cash flows into the business and reduce monthly principal loan repayments.