TOP
Tuesday,September 29,2020 11:17 AM

Major Coffee Plant Under Receivership

By Vision Reporter

Added 7th March 2003 03:00 AM

One of Uganda’s major coffee processing plants, being run by Charles Karamagi and valued at over $4.1m (about sh7.7b), is being sold off. Other sources valued the total assets at over sh11b.

One of Uganda’s major coffee processing plants, being run by Charles Karamagi and valued at over $4.1m (about sh7.7b), is being sold off. Other sources valued the total assets at over sh11b.

By Mikaili Sseppuya
One of Uganda’s major coffee processing plants, being run by Charles Karamagi and valued at over $4.1m (about sh7.7b), is being sold off. Other sources valued the total assets at over sh11b.
Nile Commodities in Nalukolongo, is under receivership after falling behind in its loan repayments. HSBC and the Midland Bank in the UK, have placed Karamagi’s Intertrade Services, Acme Cargo, Quality and Nile Commodities under the receivership of Patrick Barugahare for sale or lease.
Baruhagare told The New Vision in mid-week the lenders had tried everything possible to get their money back. He said it was only after failing that they had resorted to receivership.
“The banks first tried all other means to get back their money and it was only after several talks had failed to produce results, that they very reluctantly had to sell the facility. You know banks do not want their clients to go into liquidation.
“We have received some interest from some multinational firms. The plant is capable of processing all Uganda’s coffee for export and is valued at least $4.1m,” Barugahare told The New Vision on Wednesday.
Sources say SOCAFINA and Oyam have expressed an interest in the business. Karamagi, a former managing director of Uganda Railways Corporation, was unavailable for comment.
Nile Commodities had been the biggest employer in the area. It employed hundreds of sorters, especially young women for day and night shifts. They in turn had been supporting a growing number of vendors outside the gates serving meals, second- hand clothes and other amenities.
“It is a major blow to us that these people no longer work. We have no market for our meals, as even the long distance truck drivers from neighbouring countries who came here for their coffee are no longer coming either,” one of the few remaining vendors said.
Coffee exporters have been generally hit by low prices.
The property is on nine acres of land and includes a sorting section, a grading section and factory, a silos area, husks area, a concrete railway siding platform and the main processing factory.
Vehicles and crane lifts. will all be sold on ‘as is’ basis. The closing date for bids is March 10.Ends

Major Coffee Plant Under Receivership

Related articles

More From The Author

More From The Author