MOGAS seized by Stanbic Bank to recover debt
All MOGAS dealers, Station Managers, and Area Sales Managers have been reportedly invited to attend a crisis meeting for a receivership, where Ligomarc has been appointed as the receiver.
MOGAS, rumoured to be owned by Geoffrey Rugazoora, who has been CEO for about 30 years, has suffered the wrath of COVID-19.
With over 30 years of operations, MOGAS has grown its footprint across all the East African countries – Uganda, Kenya, Tanzania, Rwanda, Burundi and the eastern DRC.
FMOGAS is a locally founded regional oil marketing company. Uganda has been her main market.
Today, the MOGAS retail network consists of 85 service stations across the region and 32 of them are in Uganda. Four regional depots with a combined capacity of 52,500 cubic metres –including one of 4,400 cubic metres in Kampala.
It has a service network with import receipt, storage and distribution of refined petroleum products. The premium-quality MOGAS branded oils and lubricants have been popular on the Ugandan market and the MOGAS LPG brand, which was pioneered in Uganda, has grown into a household name.
The Ugandan subsidiary of Maestro Oil and Gas Solutions (MOGAS), a multinational dealing in oil products, has been placed under receivership over failure to pay its debts. Ligomarc Advocates, a financial and corporate law firm, has been appointed administrator of MOGAS.
On Monday, October 18, 2021, the law firm summoned all MOGAS dealers, station managers, and sales managers to a crisis meeting in regard to the receivership.
Kabiito Karamagi, the managing partner of Ligomarc Advocates, wrote: “All dealers are expected to come with copies of their dealership agreements for verification and further management. Any station that does not submit its agreement by the aforementioned date will be assumed to be company-owned and company-operated for purposes of the receivership.”
Receivership is a remedy available to secured creditor to recover amounts outstanding under a secured loan in the event that the company defaults on the loan. It is used as a debt collecting tool.