Kenpong Travel & Tours Limited faces a winding-up petition at the Commercial Division of the High Court in Accra. First Atlantic Bank Limited filed the petition over an alleged unpaid judgment debt of GHS 2.55 million. The bank seeks an official winding-up order for the prominent travel company.
First Atlantic Bank argues Kenpong Travel & Tours is unable to pay its debts. The petition asks the court for an order under the Corporate Insolvency and Restructuring Act, 2020 (Act 1015). This case involves a financial institution enforcing a debt claim against a well-known Ghanaian company.
This case reflects broader challenges in Ghana's corporate landscape regarding debt enforcement and financial stability. It underscores the legal recourse available to creditors when companies face financial difficulties. The Corporate Insolvency and Restructuring Act aims to provide a framework for such situations, balancing creditor rights with business continuity. Previous cases have shown that insolvency proceedings can significantly impact a company's operations and public image.
According to the petition, First Atlantic Bank's Executive Director, Daniel Marfo, initiated the action. He formally requested the court to wind up Kenpong Travel & Tours "due to its inability to pay its debts as a Company." The petition details Kenpong Travel & Tours as a company incorporated in Ghana, known for its travel services and promotion of tourism activities.
The dispute originates from a 2019 lawsuit (Suit No. CM/BFS/1191/2019) where First Atlantic Bank sued Kenpong Travel & Tours and five other parties. On August 15, 2022, the court ruled against the respondents. The bank states that the amended judgment notice was served subsequently. The GHS 2,549,969.28 debt also includes interest at the prevailing commercial rate until full payment. An additional GHS 20,000 in costs was imposed on the company.
If the court grants the petition, it would lead to the dissolution of Kenpong Travel & Tours. The bank is asking for three main reliefs from the court. These include winding up the company and liquidating its assets to satisfy the judgment debt. Additionally, the bank seeks to restrain the company's directors from interfering with its assets during the proceedings. A winding-up order would severely impact the company's ongoing operations and reputation. It could also set a precedent for other corporate debt enforcement cases involving high-profile entities in Ghana's business sector.