Receiver grants October 18 deadline to collapsed S&L, finance houses to file claims

Depositors and creditors of the 23 collapsed savings and loans companies and finance houses who could not submit their claims have been granted another lifeline to do so — they now have up to October 18, 2019, to file their claims.

In a statement issued by the receiver, Eric Nana Nipah on Monday, October 7, 2019, said: “The Receiver has noted that some depositors of the 23 S&Ls and Finance Houses have not yet submitted their Proof of Debt (“PoD”) forms.

‘’Notice is hereby given that depositors who have not yet submitted their claim forms should do so on or before Friday 18th October 2019 for validation,’’ the statement cited.

The statement further noted that, after this date, the receiver will conclude that there are no more outstanding claim forms to be submitted.

Consequently, it is the intention of the Receiver to extend the period for depositors to submit their PoD forms to accommodate the needs of depositors who are yet to do so.

Bank of Ghana’s strategy for S&L and Finance Houses

In an earlier statement from the Bank of Ghana, “The revocation of the license of these institutions has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana has engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.”

''It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors.''

The central bank, however, in August 2019 appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers (Ghana) Limited (“PwC”) as Receiver for the purpose of winding down the affairs of 23 collapsed Savings and Loans and Finance Houses after they lost their license due to a number of regulatory infractions.

Mr. Nipah among other things is expected: (i) to maximize asset realisations for the benefit of Creditors including mainly Depositors and (ii) Distribute realizations in accordance with the relevant provisions of Act 930, to satisfy the indebtedness of these institutions to their body of Creditors, to the extent possible.