The Ongoing Turnaround Plan of TransCentury Limited (NSE: TCL) has enabled the company to reduce Commercial Bank debt by 40%.
According to the company's announcement, the reduction in debt also enables the cash to be redirected to production.
The Turnaround plan involves four steps which are debt reprofiling to match cash flows, the delivery of a robust and fundable order book, fundraising, and order book execution.
The company's Secretary, Virginia Ndunge, states that the cash relief that will result in the reprofiled debt that will be pushed back to
between 5 to 10 years will be re-injected into operations.
TransCentury Limited plans to boost its liquidity through a fundraising transaction that it is currently negotiating.
The company is scheduled to publish FY2019, H1 2020 results by December 31.
The delay in publishing 2019 full-year results as well as interim results for 2020 H1 is due to the restructuring that is ongoing and the fundraising transaction.
According to the company's secretary, the turnaround plan has impacted its audits and interfered with the result release.
The Capital Markets Authority granted the company an extention to December 31.
Mrs. Ndunge said, “…the Company has applied for, and obtained approval from the Capital Markets Authority (“CMA”) for the extension to file and publish its FY2019 results and the H1-2020 results by 31st December 2020."
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