Banks seize assets of Produce Buying Company over GHS 300 million debt
A consortium of banks, including Agricultural Development Bank, GCB Bank, Bank of Africa, CalBank, UMB, and UBA Ghana, has successfully obtained a court order to confiscate assets belonging to Produce Buying Company (PBC).
The move comes in response to PBC’s failure to settle debts exceeding GH¢300 million.
The assets targeted for seizure encompass a range of vehicles and equipment, with the possibility of the company’s head office facing auction should the debts remain unpaid. The banks, acting as plaintiffs, sought recourse through a summary judgment application filed on October 9, 2023, under Order 14 of C.I 47.
Notably, PBC’s indebtedness to each bank varies, with GCB Bank leading the creditors with GH¢108.469 million, followed by CalBank (GH¢71.049 million), Bank of Africa (GH¢42.295 million), and others. The attachment order, authorized by Chief Justice Gertrude Torkonoo, underscores the gravity of the financial straits facing PBC.
Sources reveal that PBC’s financial woes date back to last year when the company began grappling with funding challenges for cocoa bean purchases. The precarious debt position has led to frozen accounts, obstructing financial transactions through commercial banks. Consequently, PBC’s financial predicament has not only jeopardized its core business activities but has also impacted its ability to meet payroll obligations, resulting in salary arrears for its workforce.
