The ARM Cement’s Rwanda and Tanzania units sale has run into litigation due to a court order obtained by the company’s former chief executive, Pradeep Paunrana. He has challenged in the high court, the transfer of the firm’s assets to Devki Group-owned National Cement. Subsequently, the court Order has barred the administrators from transferring the firm’s local business to National Cement. ARM Cement, was founded in 1974 by the late Harjivandas J Paunrana,and has been the flagship business of the Paunrana family.
In a recent notice issued by the administrators the shareholders were informed that the sale process of assets belonging to ARM Cement PLC will continue after a successful conclusion of the trial which is before the High Court. The company statement assured the shareholders that the administers will continue to pursue the transactions processes in relation to the subsidiaries of the company and was hopeful to achieve the best possible outcome for the company’s creditors. However, according to some sources, With the litigation process on, Shareholders of the cement firm may not receive any payout from the transactions whose proceeds will mainly go to settle claims by secured creditors.
