Over GH₵400m realized from sale, recovery of UT, Capital assets

Over GH₵400 million has been realized from the sale and recovery of UT and Capital banks’ assets, the Receivers of both banks have said.

According to a statement from the Receivers, “The greatest value of the banks’ assets is the loan stock. It constitutes approximately 70% of the total assets of GH₵3.9 billion of the banks and this is at the heart of our recovery efforts. The total loan stock of the two banks amounted to GH₵2.7 billion as at the receivership date.”

Prosecution

The statement said a key component of the Receiverships is to secure all assets including the recovery of outstanding loans and advances not assumed by GCB for the benefit of creditors.

Read the full statement below: 

UT BANK LIMITED AND CAPITAL BANK LIMITED (BOTH IN RECEIVERSHIP) – RECOVERING OUTSTANDING LOANS

Accra, 9 October 2018 – Over the last twelve months, we have been engaged in the process of winding down the activities of UT Bank Ltd. (“UT”) and Capital Bank Ltd. (“Capital Bank”). Both banks went into receivership in August 2017, as a result of severe impairment of their capital. GCB Bank Ghana Limited, through a Purchase and Assumption Agreement signed with us, purchased some assets and assumed certain liabilities of the two banks.

A key component of the Receiverships is to secure all assets including the recovery of outstanding loans and advances not assumed by GCB for the benefit of creditors. We have realized over GHC 400million through our sale and recovery efforts.

The creditor base of the two banks includes the Bank of Ghana, depositors, Development Finance Institutions, employees and trade suppliers of the two banks. We have made a request for creditors to submit their claims and proofs of debt for validation. Of a combined creditor claim of the two banks amounting to approximately GHC4.4billion lodged with the Joint Receivers so far, we have validated and agreed on claims worth approximately GHC3.7billion.

The payment of creditors will be governed by the Banking and Specialized Deposit Taking Act 2016, Act 930 in the order of Secured Creditors, Bank of Ghana, statutory amounts owed Government, e.g. taxes, wages and salaries owed employees etc.

We are vigorously pursuing debtors through negotiations and court actions in order to recover substantial amounts owed both banks as this is critical to the task of paying creditors including employees. The Joint Receivers will also be publishing the names and amounts owed the two banks by defaulters in both print and electronic media soon. – Joint Receivers

Signed
Mr Eric Nipah
For Joint Receivers

Source: Joy Business

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