Banks Seize Assets of Produce Buying Company Over GH¢300 Million Debt

A consortium of banks has taken drastic measures against Produce Buying Company (PBC) following its failure to settle a debt exceeding GH¢300 million.

The banks, including Agricultural Development Bank, GCB Bank, Bank of Africa, CalBank, UMB, and UBA Ghana, secured a court order to confiscate some of PBC’s assets, including vehicles and equipment.

The court bailiff, whose name has been withheld, disclosed to Joy Business at PBC’s premises that the company’s head office would face auction if it doesn’t promptly repay its debts to the banks.

This action comes after the financial institutions filed for summary judgment against PBC under order 14 of C.I 47, seeking to recover their outstanding dues.

PBC’s debt to the banks is substantial, with amounts owed to individual banks ranging from GH¢11.219 million to GH¢108.469 million. Chief Justice Gertrude Torkonoo issued an attachment order, compelling PBC to settle its obligations to the six banks.

The company’s financial woes have been exacerbated by its struggle to secure funding for purchasing cocoa beans since the previous year.

Sources attribute this difficulty to PBC’s mounting debt, which has led to frozen accounts and hindered financial transactions with commercial banks. Consequently, staff salaries have been in arrears, adding to the challenges faced by the company.

As PBC navigates through its financial crisis, the looming threat of asset auction underscores the urgency for the company to address its debt obligations and regain financial stability.