UT, Capital Bank Receivers Recover Over GH¢400m

Eric Nana Nipah

Receivers for defunct UT and Capital Banks have indicated that they have realized over GH¢400 million through their sale and recovery efforts.

In a release issued and signed by Eric Nana Nipah,
the joint receivers said “over the last 12 months, we have been engaged in the process of winding down the activities of UT Bank Ltd and Capital Bank Ltd”.

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 receivers, purchased some assets and assumed certain liabilities of the two banks.

The greatest value of the banks’ assets is the loan stock which constitutes approximately 70 percent of the total assets of GH¢3.9 billion of the banks.

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.

Noting that a key component of the receiverships was to secure all assets, including the recovery of outstanding loans and advances not assumed by GCB for the benefit of creditors, the receivers named the creditor base of the two banks as the Bank of Ghana (BoG), 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 GH¢4.4 billion lodged with the Joint Receivers so far, we have validated and agreed on claims worth approximately GH¢3.7 billion.

“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.

“In our efforts to recover outstanding loans, we have initiated a civil action against debtors with several writs filed so far. Where there has been criminal activity, we have involved the Economic and Organized Crime Office (EOCO). In the investigation of some of these criminal activities, EOCO has prepared several dockets and sent them to the Attorney General’s Department for prosecution.”

They further stated that they were vigorously pursuing debtors through negotiations and court actions in order to recover substantial amounts owed both banks since the move was key to the payment of 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.”

Earlier reports revealed that EOCO, with assistance from the Joint Receivers, had prepared five dockets which had been submitted to the Attorney General’s Office for further action to be taken.

By Samuel Boadi