ARM cement plant [Photo/Business Daily] Vehicle and Equipment Leasing Limited (Vael) is seeking an injunction from the High Court to bar ARM Cement from offloading a stake of its business after the two parties failed to come to a consensus over a Sh214 million debt.
According to Vael, ARM has not yet settled its Sh214 million debt for vehicle leasing services and if the company is permitted to move forward with the transfer of its business Vael will not be able to recover the debt.
This follows a Kenya Gazette notice issued by ARM Energy on October 19 stating that they will not take up the debt owed by ARM Cement.
Vael insists that the company has failed to settle the pending debt and as a result financiers have refused to lend them money for other projects.
“The respondents subsequently failed to make payments as agreed and accrued rental arrears due and interest prompting termination of the lease agreement between themselves and Vael. None of these processes elicited any response or explanation from ARM and Adpak,” Vael legal officer Pauline Wambui says.
ARM is said to be suffering financially after several of its business have failed to generate revenue.