Creditors have begun seizing assets of PBC Ltd. after the firm failed to repay GH¢305.2 million owed to a consortium of six banks, GCB, UBA, ADB, Cal Bank, Bank of Africa and UMB, escalating a years-long legal dispute over cocoa financing.
About 32 haulage vehicles on the company’s premises are being removed for a potential auction, with some towed and others driven away. The seizure follows a court judgment in 2024 in favour of the lenders after legal action initiated in 2023.
PBC had sought to halt enforcement through a stay of execution, but its latest application was dismissed on April 15, clearing the way for creditors to proceed with recovery.
The loans were originally extended to finance cocoa purchases, a core part of PBC Ltd’s operations as a licensed buying company in Ghana’s cocoa sector. The company’s inability to service the debt underscores liquidity pressures in a segment that relies heavily on short-term bank financing tied to commodity cycles.
The latest enforcement action comes against a backdrop of longstanding governance and compliance concerns. PBC Ltd was previously delisted from the Ghana Stock Exchange for failing to meet financial reporting requirements, raising transparency issues for investors.
READ ALSO
Internal oversight has also been flagged as weak. The company’s internal control unit remains under-resourced, while audit reports indicate that recommendations to mitigate operational and financial risks have not been adequately implemented.
The asset seizure is being done to recover funds, though the value of the haulage vehicles, most of which are spoilt is unlikely to fully cover the outstanding amount, raising the prospect of further enforcement actions.
Approximately 80% of PBC’s long-term debt is owed to Ghanaian institutions, pointing to domestic exposure to the company’s financial distress. GCB Bank alone holds more than GH¢100 million in loans, making it one of the largest individual creditors.
The development also puts pressure on key state-linked shareholders, including the Social Security and National Insurance Trust, which holds about 38.1% of the company, and the Ministry of Finance with a 36.7% stake. Other institutional investors include African Tiger Mutual Fund Limited and a consortium managed by NTHC Limited.
The presence of public-sector shareholders raises questions about potential financial or policy implications, particularly given the strategic role of cocoa in Ghana’s export earnings. However, there has been no indication of state intervention to support the company or restructure its obligations.
The case cites broader risks in Ghana’s cocoa financing model, where buying companies depend on bank credit to procure beans ahead of export payments. Delays in cash flows or operational inefficiencies can quickly translate into debt distress.
