General News of Tuesday, 6 November 2018
The Receiver of defunct UT Bank, Pricewaterhouse Coopers (PwC), has sued UT Holdings, the parent company of UT Bank, over its failure to repay GH¢51.3m investment made by the bank.
The plaintiff, which was appointed as the Receiver of the bank after its collapse, is also seeking an order from the court for UT Holdings, which has about six subsidiaries and owned by Ghanaian businessman, Kofi Amoabeng, to cough up another $8.6 million, representing the value of investment placed in the company by the defunct bank as of August 14, 2017.
Another subsidiary of the company, UT Logistics, which has been attached to the writ as the second defendants, has also been sued for its failure to repay over GH¢9.3 million it took from the defunct bank.
The plaintiff averred that the defendants would not repay the money unless ordered by the court to do so.
It said the Receiver has held several meetings with UT Holdings and UT Logistics in order to recover the loans and investments but to no avail.
The plaintiff is therefore seeking an order against UT Holdings to repay the investment with interest at the prevailing commercial bank rate from August 14, 2017, till the final payment, and at the relevant Bank of Ghana (BoG) dollar rate on the United States dollar component.
It is also seeking an order directed at UT Logistics to repay the loan of GH¢9,317,700.46 with interest calculated at the prevailing commercial bank interest rate from August 14, 2017, till date of final payment, or in the alternative an order for the realization of all security/collateral to pay off the outstanding debts.
The plaintiff is also seeking damages for breach of contract, cost and any other reliefs deem fit by the court.
UT Bank, which is in receivership, was one of the subsidiaries of UT Holdings until its collapse in 2017 due to liquidity challenges.
It collapsed along with Capital Bank, and the Bank of Ghana (BoG) accused the shareholders of the two banks of engaging in willful deceit.