Prime News Ghana

Shareholders of uniBank to recapitalize

By PrimeNewsGhana

Shareholders of Unibank have resolved to recapitalize the bank to address both the solvency and liquidity challenges facing the institution.

According to the Daily Graphic newspaper, the decision was taken by Dr Kwabena Duffuor, a shareholder of the bank on behalf of shareholders of the bank.

“We are also ready to progress discussions on the appropriate structure to handle and leverage the assets of the bank registered with the name of the holder, House of Duffour Assets (HODA)”, a letter signed by Dr Duffour in response to an earlier one written by KPMG said.

The assessment was made after the official administrator of the bank, KPMG, wrote a letter to the shareholders of the bank urging them to accept one of three strategic options to save the bank.

The options included “Good banks or Bad banks, Recapitalization by existing shareholders with or without new shareholders and Recapitalization by new shareholders”.

It will be recalled that the Central Bank appointed KPMG as official administrators of Unibank to assume managerial control of the bank after it emerged they were facing liquidity challenges.

The powers, functions and responsibilities of the shareholders, directors and key management were effectively suspended with the appointment of the official administrator.

According to KPMG, the total deficit of Unibank stands at 4.9billion cedis.

But Dr Duffuor in a letter to KPMG assured and affirmed their readiness to accept one of the three options available to them which are recapitalizing Unibank.

Ghana News: Latest Business news 

Credit: Citibusiness