PwC to take legal action against loan defaulters of defunct UT, Capital Banks

Price Water House Coopers (PwC) has hinted of possible “legal action” to help recover outstanding loans secured from defunct UT and Capital Banks.

This was after the joint receivers for the defunct banks, Price Water House Coopers, published the names of these defaulters in the Newspapers on January 18, 2019.

According to the notice signed by Vish Asiagbor and Eric Nana Nipah the former customers who had defaulted in the loan obligation should try and settle their indebtedness by March 31, 2019.

They added that “this notice is without prejudice to any legal action that the Joint receivers may institute to recover all the amounts owed and to UT and Capital banks”.

Why this action?

Sources say the move has been influenced by some challenges in recovering these loans. This is part of some measures that they adopted for these individuals and business to settle their indebtedness.

However, JoyBusiness is learning that the “action” which could happen at the end of March 2019 would target firms and businesses that fail to honour or have not taken steps to pay these loans.

Who are the defaulters?

Based on the notice from the Joint receivers, UT bank has about a total number of 58 entities that have defaulted on their loans. Capital Bank has 33 entities that are said to be defaulting on their loans.

Below are the list of “big wigs” or “big firms” in the notice

Beige Group and Beige Village, Citylink, Imperial Homes, Sparrow Productions, Saltpond Offshore company, these firms owed the defunct UT bank. The rests are Express Savings and Loans and FirstBANC Limited.

PwC and recovery of defunct banks assets

Price Water House was in 2017 appointed by Bank of Ghana as Joint receivers to help recover the bad assets of defunct UT and Capital banks.

Late last year the receivers announced that they had recovered about GHc400 million from the sale and recovery of some of the assets of UT and Capital Banks.

According to a source close to the company, the total amount recovered is now more than GHc400 million.

Payment of defunct workers of UT and Capital banks

The Joint receivers on January 18 2019, begun paying the severance packages of the workers.

This was after the workers completed signing some legal documents, allowing the workers to take Bank of Ghana’s position as when it comes to paying off credits of UT and Capital Banks.

However, it is not all the workers that are so excited about these payments; a spokesperson for the defunct workers, Raymond Addai Danquah told JoyBusiness this is because some of them took loans from the Bank, especially Capital Bank workers and they may have to use their severance package to pay off. This could end up with some of them taking “nothing” home.

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