Shelter Afrique boosts legal team with external lawyers
Troubled mortgage financier Shelter Afrique has kicked off the search for external lawyers to help it fight out its battles and advise on its continuing debt restructuring amid looming loan repayments.
The search for consultants comes as the lender readies to meet claims by its bondholders in about three months.
Shelter Afrique has, in a notice on its website, specified that the external lawyers will be expected to support its in-house lawyers in delivery of advice for projects in member countries as well as file court cases in respective jurisdictions and boost its presence in court.
“They will be expected to carry out legal due diligence on projects and customers seeking funding from Shelter Afrique, as well as funded projects under review,” provide advice and draft agreements for loans and projects funded by Shelter Afrique and legal advice and draft agreements for loan restructuring.”
The troubled pan-African financier early this year faced huge losses after the structural fitness of housing units worth more Sh730 million in Kenya was put into question by the National Construction Authority (NCA).
Shelter Afrique and Everest Park Limited have since said they will bear the cost of repairs at their Athi River residential estate, which was found to be structurally unsound.
The company’s bond holders in May approved a financial restructuring plan that allowed the financier to reschedule repayments of a Sh13 billion debt it owes 10 development finance institutions and safeguard against a possible default.
The decision of the special extraordinary meeting in Nairobi with the holders of a bond it issued in 2013 was seen to provide some relief to the troubled financier which had sought a compromise with its financiers amid the looming repayments to note holders that are due in September. Shelter Afrique turned to the 44-member states late last year for Sh9.2 billion to steady its finances after turbulence.