Kampala court halts bid by struggling Ugandan tycoon to reclaim assets mortgaged to South African creditors
In a new update to the loan dispute between Johannesburg-based Vantage Capital and struggling Ugandan businessman Patrick Bitature, the Commercial Division of a High Court in Kampala has issued a ruling to prevent Bitature from reclaiming shares and properties mortgaged to the creditors.
On Nov. 17, Justice Ocaya Thomas, presiding over the Commercial Division of the High Court, delivered a crucial blow to Patrick Bitature’s attempts to bypass his South African creditors — this ruling suggests a strong commitment by the court to protect the interests of the creditors and influence future lending in the region.
Judge blocks land title cancellations and registration of dilutive resolutions amid financial dispute
The judge issued an injunction that effectively blocks the Commissioner Land Registration from cancelling mortgages and land titles linked to Patrick Bitature and his companies — this comes on the heels of a Kampala Court of Appeal decision more than a year ago that prevented the advertisement and auctioning of prime properties owned by Bitature.
In addition to preventing the cancellation of mortgages and land titles, Justice Thomas also intervened to halt the Uganda Registration Services Bureau from registering resolutions put forth by Bitature’s companies — these resolutions, if implemented, would have diluted the influence of the South African lenders in the ongoing financial dispute.
Patrick Bitature faces $65.7-million ICC ruling, including $25.4-million personal liability
Prior to the recent ruling by Justice Thomas, the International Chamber of Commerce Court of Arbitration in London delivered a decisive ruling in favor of Vantage Capital, ordering Patrick Bitature, his wife, Carol Nzaro, and their companies to pay a total of $65.7 million.
According to court documents, Bitature was directed to personally pay $25.4 million as a result of a breach of contract. This amount represents both the breach itself and the compound interest at a rate of 13 percent per annum — calculated quarterly from Feb. 16 to the date of the award.
His companies were also ordered to pay Vantage Capital a sum of $35.44 million — this payment includes a component of $115,591 for pre-arbitration legal fees, disbursements, and related costs.