Court in Kampala has ordered Stanbic Bank to suspend its takeover of petroleum products distributor MOGAS. Stanbic put MOGAS under receivership after defaulting on 12 loans totalling to 43,181,259, 828 (which includes both the principal and the interest), which the bank extended to Mogas between 2018 and 2020.
In her ruling, High Court judge, Hon. Justice Jeanne Rwakakooko granted a temporary injunction of six months to allow MOGAS to complete its negotiation with Ola Energy Ltd which was willing to take over MOGAS and pay off a debt.
Mogas had contested the move by Stanbic to put it under receivership yet they had notified Stanbic about their talks with Ola Energy. Mogas said Stanbic rushed to put the company under receivership just before the grace period could run, and this rendered their arrangements with Ola invalid.
Mogas has over 35 branches in Uganda.
Founded in 1987 Maestro Oil & Gas Solutions (MOGAS) is an integrated regional downstream oil marketing company with business operations ranging from international oil trading to marine and inland terminals, retail networks, and lubrication services.
