ARM suspension from NSE extended by 75 days

The Nairobi Securities Exchange (NSE) has extended the suspension of trading Athi River Mining (ARM) shares as the cement company which is now under administration continues to explore ways to turn around its fortunes.

NSE in a statement to newsrooms on Tuesday, October 30 asked shareholders, investors and the public to take note of the extension of the suspension which was first placed on August 20.

“The extension of suspension was issued by the Capital Markets Authority pursuant to Regulation 22(2) (b) of the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002 and takes effect from October 29, 2018,” said NSE in a statement.

According to the bourse, the trading suspension will remain in force for a further 75 working days.

The cement manufacturer was placed under administration on August 18, to allow the firm to streamline its operations and find ways to return to profitability.

United Bank of Africa (UBA) one of ARM’s creditors appointed PricewaterhouseCoopers (PwC) duo Muniu Thoiti and George Weru as joint administrators.

READ: ARM CEMENT REVIVAL HINGES ON PwC PROPOSAL

The insolvency Act 2015 allows cash strapped companies to regroup and avoid creditors from attaching their assets.