In order to recover overdue loans, Stanbic Bank Uganda has placed oil marketing company Mogas Group into receivership.
In the event that a secured creditor defaults on a loan, receivership is a remedy available to the secured creditor to recover sums owed under the loan.
As a result, it’s employed to collect debts.
The measure has been proposed by the bank in order to recover outstanding debts owed by the oil marketing company, according to the bank.
“To recover overdue liabilities, Stanbic Bank Uganda Limited has placed Mogas Group assets under receivership.” “In Uganda, Kabiito Karamagi of Ligomarc Advocates has been appointed receiver and is heading the takeover process of the borrower’s assets,” the company stated in a statement.
The bank informed the Inspector General of Police of an impending security enforcement action against a defaulter in a letter dated September 28, 2021.
“This is to formally notify you that Stanbic Bank Uganda Limited, through its solicitors H and G Advocates and Ligomarc Advocates, intends to begin an enforcement process in respect of one of its largest non-performing clients,” reads part of the letter.
The bank claims that the receivers appointed by the bank will take over Mogas’ property in various parts of the country as part of the receivership procedure.
“It is anticipated that the process will be carried out peacefully and in an orderly manner without causing any inconvenience to neighbors,” the bank writes as it asks for police assistance.
Ligomarc Advocates sent another letter to the police chief on October 14, 2021, advising him of the selection of lawyer Kabiito Karamagi as the company’s receiver.
According to the letter, the takeover of Mogas assets will take place in Kampala, Jinja, Entebbe, and Busega.
Debt
According to Stanbic, Mogas was a Standard Bank Group client who had many loans in several jurisdictions, including Uganda, and the asset acquisition was used as a last resort.
“The asset takeover is being used as a last resort after all other options have been exhausted over the last three years,” the bank said.
Mogas, a worldwide integrated downstream oil marketing firm, is claimed to have defaulted on its credit obligations, resulting in a protracted payback negotiation that began in 2018 and is now at its conclusion.
Maestro Oil & Gas Solutions (MOGAS) is a regional downstream oil marketing company with operations ranging from international oil trading to marine and inland terminals, retail networks, and lubrication services. It was founded in 1987.
With operations in Uganda, Kenya, Tanzania, Rwanda, Burundi, the Democratic Republic of Congo, and the United Arab Emirates, the company has firmly established itself as the leading brand name for fuels, oil, and lubricants in East and Central Africa.
Mogas’ core operating assets in Uganda include, among other things, modern inland fuel depots with a capacity of 5,000 m3 in Kampala, as well as being the sole distributor for Castrol in Uganda and Rwanda.
