A consortium of banks has confiscated some assets of the Produce Buying Company (PBC).

This was after it secured a court order to sell some of the company’s assets over nonpayment of debt running into more than GH¢300 million.

The assets include vehicles and some equipment.

The Court Bailiff [name withheld] told Joy Business at the company's premises that the head office of PBC will be auctioned if the company fails to honour its debt to these banks within the shortest possible time.

The banks include Agricultural Development Bank, GCB Bank, Bank of Africa, CalBank, UMB and UBA Ghana.

The financial institutions applied for summary judgement on October 9, 2023, under order 14 of C.I 47 against the defendant, PBC.

In respect of the 1st Plaintiff (ADB Bank), the licensed buying cocoa company is expected to pay GH¢49.257 million. PBC is also expected to pay GH¢11.219 million, GH¢71.049 million, GH¢108.469 million, GH¢42.295 million and GH¢13.728 million to Bank of Africa Ghana, CalBank, GCB Bank, UMB and UBA Bank respectively.

The attachment order was issued by the Chief Justice, Gertrude Torkonoo, to have the company honour its debt obligations to the six banks.

PBC struggles to secure funding from banks

Since last year, PBC, has been struggling to secure funds for the purchase of cocoa beans.

Sources say this was due to the company’s current debt position, which made it difficult to carry out any financial transaction through the commercial banks.

Joy Business understands that PBC accounts with some of these banks have been frozen due to the company's failure to settle debt to the banks. This situation has made it difficult for the licensed buying cocoa company to undertake some financial transactions through the commercial banks.

Joy Business also understands that the salaries of staff have been in arrears for some time now due to this challenge.