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UT Holdings and UT Logistics sued

By Wendy Amarteifio
UT_ Holdings and UT Logistics sued
UT Holdings and UT Logistics sued over refusal to pay loans

UT Holdings and UT Logistics, have been sued by receivers of the bank, PricewaterhouseCoopers (PwC) for non-payment of some loans acquired before the bank collapsed.

According to the suit before an Accra High Court, an amount of GHc51 million and US$8 million respectively, were invested into UT holdings before UT bank collapsed.

Furthermore, PwC in its writ also complained that UT Logistics has refused to pay a GHc9 million loan balancer “which remains outstanding and unpaid till date.”

PwC is, therefore, asking the court to order both companies to refund the money with the necessary interest.

UT Bank is among seven local banks that have collapsed after they were unable to pay debts in the country in the last 12 months.

UT Bank and Capital bank were the first companies that collapsed and were taken over by the GCB bank in 2017 after receiving the green light from the central bank, the Bank of Ghana.

PWC in its writ is seeking an order directed at UT Holdings “for the recovery of GHc51,334,387.08 million and US$8,612,829.33 representing the value of investments placed with UT holdings, which remains outstanding and unpaid till date, with interest calculated on the Ghana cedi component at the prevailing commercial bank rate from August 14, 2017 till date of final payment and at the relevant Bank of Ghana dollar rate on the United States dollar component.”

Price Water House Coopers also wants an order “directed at the defendants [UT Holdings and UT Logistics] jointly and severally for the payment of GHc9, 317,700.46 with interest calculated at the prevailing commercial bank interest or in the alternative, an order for the realization of all security collaterals to pay off the outstanding debts.”

Pwc lamented that the companies have refused to pay the monies, and only a court order will compel them to refund the monies.

“The plaintiff says that in the exercise of efforts to recover the outstanding loans, several meetings have been held with the defendants, but they have refused to redeem the outstanding loans. The plaintiff says that the defendants will not pay the outstanding loans unless compelled so to do by the fiat of the honourable High Court,” PwC added in the writ

PricewaterhouseCoopers had earlier disclosed that it has recovered only 15% of the total loan stock of the two defunct banks, UT and Capital Bank.

PwC said the greatest value of the banks’ assets which is the loan stock, constitutes approximately 70% of the total assets of GHC3.9billion of the banks.

The total loan stock of the two banks amounted to GHC 2.7billion as at the receivership date.

According to the receivers, they have realized over GHC 400 million through their sale and recovery efforts.

CEO of defunct UT bank, Prince Kofi Amoabeng had complained that the bank’s collapse in 2017 has resulted in severe business challenges for other companies under the UT group.

According to him, the UT brand has lost its past glory as the collapse of the UT Bank has “defamed” the UT brand.

Kofi Amoabeng said in a statement that the situation among other things has resulted in difficulties in servicing payments due to its investors.

“The actions so far taken by the central bank have adversely affected the operations of the remaining group of companies of UT.

The UT brand which was previously a superbrand a few years ago has been totally defamed. The situation has, for instance, led to difficulties in the servicing of payments due investors,” he noted in his statement.

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