Loan defaulters of UT, Capital Bank given 3-month ultimatum to clear debts

By Justice Kofi Bimpeh
Defunct UT & Capital Bank

Loan defaulters of defunct UT and Capital banks have been given a 3-month ultimatum to redeem their indebtedness to the banks.

According to media reports, ninety-one (91) companies and individuals owe UT and Capital Bank.

The development comes at a time where some recoveries have been made which is being used to pay off exit pay of former workers.

Of the ninety-one companies and individuals who owe UT and Capital bank, fifty-eight (58) owe UT bank while the remaining thirty-three (33) owe Capital bank.

Some notable companies and individuals indebted to UT Bank are Beige Group limited, Beige Village limited, CTK City Link limited and CTK Network Aviation limited.

Read also: Former workers of Capital, UT Bank to receive their severance package from Jan. 18

Others are Dihoc footwear division limited, Imperial homes limited, Morgan energy limited, Saltpond Offshore Producing Company as well as Sparrow Production limited.

Debtors of Capital bank include; BOP Investments Limited, Express Savings and Loans company limited, FirstBanc limited, Gold Coast refinery.

Others are Liberty Asset management limited and Liberty commodities limited.

Meanwhile, the Joint Receivers say the notice of loan default is without prejudice to any legal action that the Joint Receivers may institute or may have instituted for the recovery of all amounts owed and due the banks.

One and a half years after the revocation of the licenses of UT and Capital banks, the Joint Receivers have recovered some 400 million cedis (GH¢400,000,000) from the assets of the two banks.

Though this ought to have been used to offset debt due the Bank of Ghana, the central bank has since offered its entitlement up to be used to pay severance packages for the former workers of the two banks.

Credit: Citifmonline