Telkom Kenya is seeking an emergency loan of US$69 million from its shareholders – the Kenyan government and France Telecom – to stave off a liquidity crisis that could otherwise see it default on its loans.
In total, the company is reported by the East African newspaper to be seeking an additional US$125 million from its shareholders this year as well as reductions in repayments of its existing shareholder loans.
The company has warned that it will not be able to pay suppliers if it is unable to raise the funds.
The emergency loan is required to repay two unsecured loans Telkom Kenya took from Standard Chartered Bank amounting to US$616 million, which is due in the next two months. It also owes US$122 million in an overdraft loan, which is due for renewal in August 2012 in addition to a US$81 million one-year loan due for renewal in November.
Telkom Kenya is 49 per cent owned by the government and 51 per cent by France Telecom.
It was also separately reported that one of the two deputy CEO’s Jane Karuku has left the company with immediate effect, although she was already serving a resignation period.