Banks seize Produce Buying Company’s assets over GH¢300 million debt

January 26, 2024
Banks seize Produce Buying Company's assets over GH¢300 million debt: Ghana News

A consortium of banks has taken action against the Produce Buying Company (PBC) over its failure to settle debts exceeding GH¢300 million.

Following a court order, the banks have confiscated assets, including vehicles and equipment, belonging to PBC.

The Court Bailiff, whose name was withheld, stated that if PBC does not settle its debts promptly, the company's head office could also be auctioned off.

The banks involved in the debt dispute include Agricultural Development Bank, GCB Bank, Bank of Africa, CalBank, UMB, and Ghana.

The legal action was initiated through an application for summary judgment filed on October 9, 2023.

According to the court order issued by Chief Justice Gertrude Torkonoo, PBC owes varying amounts to each bank, totalling GH¢300 million.

PBC has faced challenges securing funding for cocoa bean purchases due to its mounting debt, which has led to frozen bank accounts and hindered financial transactions. As a result, staff salaries have been in arrears.

The situation highlights the financial strain faced by PBC and underscores the urgency for the company to address its debt obligations to avoid further repercussions.

Latest from Finance