While in receivership there remains some hope of the company recovering and resuming operations, now the liquidation means Crane Bank’s complete and permanent closure, a move that will see the defunct lender’s chapter closed for good. The Central Bank as a liquidator issued a statement on Friday. A liquidator is an officer or entity who is appointed to wind up the affairs of a company when it is closing and this usually happens when the company has gone bankrupt.
Bank of Uganda (BoU) has started process for complete closure of Crane Bank Limited, a move that will see the defunct lender’s chapter closed for good.
The Central Bank as a liquidator issued a statement on Friday. A liquidator is an officer or entity who is appointed to wind up the affairs of a company when it is closing and this usually happens when the company has gone bankrupt.
Crane Bank was placed under receivership since 2016 after it failed to comply with a capital call on 1st July and some of its assets were sold to DFCU bank.
There are those assets that remain in the hands of Bank of Uganda and these will now be disposed of during the liquidation process.
The Central Bank will also verify and pay claims that Crane Bank Limited owed to different people and companies. In receivership, there is hope the company can resume normal operations and now the liquidation means Crane Bank complete closure. It is akin to burial or cremation in case of death.
“Bank of Uganda took over management of Crane Bank Ltd. (CBL) on October 20, 2016 and subsequently progressed it into receivership on January 24, 2017," reads part of the public notice. "In exercise of its powers under section 99 (1) & (2) of the Financial Institutions Act, 2004, BoU has now placed CBL under liquidation and ordered the winding up of its affairs. The Central Bank shall be the liquidator of CBL.”
Prof. Emmanuel Tumusiime-Mutebile, the Central Bank Governor further orders in the public notice that all borrowers of Crane Bank whose loans were transferred to DFCU Bank under the purchase of assets and assumption of liabilities agreement between Crane bank Limited and DFCU Bank Limited, must continue to service their loan obligations with DFCU bank.
“All other borrowers of CBL, whose loans were not transferred to DFCU Bank, must service their loans by paying into the designated collection accounts at Bank of Uganda. CBL […]
