The Capital Markets Authority (CMA) has extended the suspension of Athi River Mining Ltd’s #ticker:ARM shares from trading on the Nairobi bourse for a further 21 days.
According to a public notice issued by the NSE on Wednesday, the shares of the cement maker will remain suspended until september27.
“The extension of suspension in trading of the company’s shares takes effect from August 30 and shall remain in force for a further 21 working days,” said NSE.
The company, which is grappling with a Sh14.4 billion debt, had been suspended from the bourse for seven working days starting August 20.
The CMA’s move was largely expected by market players given that the firm remains under administration and the underlying issues that caused the woes remain unresolved.
UBA Bank put the firm under administration due to a loan default on August 17.
Muniu Thoithi and George Weru of PricewaterhouseCoopers (PwC) took over the management of the company just days after embattled CEO Pradeep Paunrana and chairman Wilfred Murungi left.
The Insolvency Act of 2015 gives companies going through financial turmoil an opportunity to put their act together under administration. This allows them to continue operating instead of the earlier practice of abruptly killing them.