In Summary
  • France's Proparco, Barclays Kenya and Barclays Tanzania will allow the firm to reschedule Sh2.5bn loan repayments.

Hospitality chain TPS Eastern Africa has received waivers from financiers that had lent it Sh2.5 billion after delays in refurbishing the company’s flagship Nairobi Serena Hotel affected its cash flow.

The lenders — French sovereign wealth fund Proparco, Barclays Kenya and Barclays Tanzania — have agreed to allow the Nairobi Securities Exchange -listed firm to reschedule the loan repayments.

Chief executive Mahmud Janmohamed told the Business Daily that the company received the waivers during and after the close of the financial year ended December when the breach of the debt terms occurred.

The long-term loans taken by TPS are Sh2 billion from Proparco, a total of Sh550 million from Barclays Tanzania and Sh970,000 from Barclays Kenya.

“Nairobi Serena Hotel extension and refurbishment is now planned for completion in second quarter of 2019,” TPS says in its latest annual report.

To comply with International Accounting Standards (IAS), the loan was reclassified as a current liability.

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