Yes... it is true... Discount Securities Ltd has bitten the dust but unlike prior failures (Francis Thuo & Conmen + Nyaga stealbrokers) the CMA is doing a Chapter 11... so the firm will continue in business while another partner is sought to inject funds into DSL.
I think the CMA's actions makes better sense than just closing it down but buyers want a 'clean' license.
1) CMA & NSE to accept the debts of DSL while suing the current owners for recoveries. Then sell the 'clean' firm to other investors.
2) CMA & NSE to put the firm in receivership & sell the license. Use the proceeds to pay off claims. This is similar to what happened at FT & Co. Best option.
3) Ask buyers to buy the firm 'as is' but with a backstop for losses. This is harder to achieve but saves the CMA & NSE compensation fund lots of moolah. NIC Bank bought 60% of (Not so) Solid Securities & are still paying for it!
- ► 2012 (29)
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- Dead cat bounce at NSE?
- KQ has profitable 1H 2008-9
- Where is the Co-op Bank IPO prospectus?
- NSE going to the dogs?
- Kenyan Banks - Raising Capital
- History - We will NEVER learn
- beth 'brainless' mugo vs NEMA
- Corruption at the United Nations in Kenya
- Kenya to pay $91 million in 2009 for anglo-fleecin...
- NSSF, Discount Securities & atwoli
- Africa - The New Frontier (Part 1)
- Discount Definitely Discounted
- Discount Securities discounted...?
- Zain knock out SafCon
- Oops, alfie "foot in mouth" mutua does it again......
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