An Accra High Court will, this morning, continue proceedings in the case in which the Agricultural Development Bank Limited (ADB) has filed a suit against Mr Ato Ahwoi's cashew and spices product (CASHPRO Ltd), seeking the repayment of an amount of sixteen billion, four hundred and seventy-four million seven hundred and sixty-three thousand and fourteen cedis and twelve pesewas ¢16,474.763,7141.2, being the outstanding balance on payment guarantees, loans and overdrafts granted by bank to CASHPRO LTD.
In a writ filed at the High Court, the Agricultural Development Bank, the plaintiff in the case indicated it is seeking interest on the stated amount at the prevailing bank rate with effect from June 25, 2002, till the last date of payment.
It is also seeking an order from the court for judicial sale of CASHPRO's two houses situated at Haatso and East Legon, which were used to secure the credit facilitates for CASHPRO LTD.
The fact, of the case are that, between 1993 and 2000 the first defendant, CASHPRO LTD, applied for, and approved by ADB, two loans of ¢195,000,000.00, and ¢102,322,666.67 for the purchase of maize under an inventory credit system and participation in the plaintiff's bank's Nucleus out-grower scheme, respectively at ADB's Swedru branch.
ADB claims that between October 1993 and September 1999 several credit facilitates were granted, upon application by CASHPRO LTD, either as term loans, payment guarantees, overdrafts, inventory credits. It mentions that short-term, medium or long term loans in nature, were granted at different interest rates to CASHPRO and the facilitates were variously guaranteed, jointly and severally, by the directors of CASHPRO.
According to ADB, between the period of 1993 and 2000, CASHPRO enjoyed, at least twenty-six (26) credit facilities from ADB. As securities for these facilities, CASHPRO mortgaged its two building property, situated at Haatso and another one situated at East Legon, in Accra, jointly owned by CASHPRO, and Mr. Ato Ahwoi.
The writ said that CASHPRO further assigned its cocoa beans and its machinery plant and equipment to the plaintiff as security, and also procured an Exim Bank guarantee cover for the credit facilities. It contended that CASHPRO further executed promissory notes to secure the facilities. According to the writ, the defendants, CASHPRO LTD, Mr Ato Ahwoi, Akwasi Ahwoi, Julius Ankomah, Reginald Kofi Paitoo, Richard Kwame Asante, Ama Adoma Bartels-Kodwo, C. Owusu Boamah, Alhaji Gausu and Thomas Colema, jointly promised to secure their indebtedness with 73 acres of land, situated at Botiano, Accra, and allowed officers from the plaintiff bank's valuation unit to value the reported land at a market value of ¢2,460,000.00.
The writ explained that the total indebtness of the defendant company CASHPRO, which they, as directors, guaranteed, stood at ¢16,474,763,714.12 as at June 25, 2002. This is made up of a principal amount, in terms of overdraft and loans of ¢5,004,974,718.50, and interest component of ¢5,820,225,813.04.