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.”
This website could not immediately speak to the managers of MOGAS for this story.
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.
A receiver is appointed under debenture deed that creates security over the Company assets or appointed by court.
MOGAS is registered in the UAE and has its head office in Kampala, Uganda but is operational in Uganda, Kenya, Tanzania, DRC, U.A.E, Rwanda and Burundi.
MOGAS Uganda’s main operations are in Banda, Wakiso District where it built a multimillion-dollar depot on a four-acre plot of land.