Receivers to publish names and amounts owed UT and Capital Bank

The Joint Receivers of collapsed UT and Capital banks, PricewaterhouseCoopers (PwC), have disclosed that it has realized over GHC 400million through sale and recovery efforts of all assets of the two banks.

A statement issued by the Joint Receivers said over the last one year, they have been engaged in the process of winding down the activities of UT Bank Ltd. (“UT”) and Capital Bank Ltd. (“Capital Bank”).

They also warned that as part of the recovery effort they will also be publishing the names and amounts owed the two banks by defaulters in both print and electronic media soon.

According to the statement, the combined creditor claim which have been made to the Receivers amounts to approximately GHC4.4billion of which claims worth approximately GHC3.7billion have been validated and agreed.

"The creditor base of the two banks includes the Bank of Ghana, depositors, Development Finance Institutions, employees and trade suppliers of the two banks," the statement said.

"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 GHC4.4billion lodged with the Joint Receivers so far, we have validated and agreed claims worth approximately GHC3.7billion.

"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".

Read the entire statement below;

PRESS RELEASE

UT BANK LIMITED AND CAPITAL BANK LIMITED (BOTH IN RECEIVERSHIP) - RECOVERING OUTSTANDING LOANS

Accra, 9 October, 2018 - Over the last twelve months, we have been engaged in the process of winding down the activities of UT Bank Ltd. (“UT”) and Capital Bank Ltd. (“Capital Bank”). 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 us, purchased some assets and assumed certain liabilities of the two banks.

The greatest value of the banks’ assets is the loan stock. It constitutes approximately 70% of the total assets of GHC3.9billion of the banks and this is at the heart of our recovery efforts. The total loan stock of the two banks amounted to GHC 2.7billion as at the receivership date.

A key component of the Receiverships is to secure all assets including the recovery of outstanding loans and advances not assumed by GCB for the benefit of creditors. We have realized over GHC 400million through our sale and recovery efforts.

The creditor base of the two banks includes the Bank of Ghana, 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 GHC4.4billion lodged with the Joint Receivers so far, we have validated and agreed claims worth approximately GHC3.7billion.

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 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.

We are vigorously pursuing debtors through negotiations and court actions in order to recover substantial amounts owed both banks as this is critical to the task of paying 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. – Joint Receivers