UGANDA, Kampala | Real Muloodi New | In a recent legal development, the Commercial Court has issued a ruling preventing businessman Patrick Bitature’s attempt to transfer shares or alter the shareholding structure of four of his companies.
The attempt to transfer his shares comes as a result of an ongoing loan dispute between Bitature and South African financiers, Vantage Mezzanine Fund II Partnership and Vantage Mezzanine Fund II Proprietary Limited.
The affected companies include Simba Properties Investment Co. Ltd, Simba Telecom Ltd, Elgon Terrace Hotel Ltd, and Linda Properties Ltd.
Justice Thomas Ocaya’s ruling emphasises that any changes to the shareholding structure could potentially complicate the implementation of a future court ruling on the loan dispute.
Vantage had filed a lawsuit against Bitature, his wife Carol Bitature, the Uganda Registration Services Bureau (URSB), and the commissioner of land registration.
The court’s decision aims to preserve the status quo until a determination is made on the loan dispute.
The court order specifically prevents the commissioner of land registration from taking any actions or conducting proceedings that could affect the rights of Vantage Mezzanine Fund II Partnership and Vantage Mezzanine Fund II Proprietary Limited.
The ruling underscores the court’s commitment to ensuring justice and preserving the integrity of the ongoing legal process.
The background of the dispute reveals that Bitature secured a $10 million loan from Vantage but failed to meet the scheduled repayment, resulting in accrued interest that he declined to pay.
Despite Bitature’s legal arguments questioning Vantage’s legal standing in Uganda, multiple court cases, including arbitration, have consistently held him liable for the outstanding amount.
Bitature’s attempt to change the shareholding structure of the companies was viewed by the court as an effort to potentially circumvent the consequences of the impending court decision.
The court found evidence of resolutions filed by the companies, indicating changes in share allotments, dated in August and September 2023.
The court rejected arguments from URSB and the commissioner of land registration that issuing orders to prevent the registration of new transactions on Bitature’s property would interfere with public entities’ constitutional duties.
The ruling emphasised the real likelihood of actions that could affect the claims of Vantage Mezzanine Fund II Partnership and Vantage Mezzanine Fund II Proprietary Limited, urging the court to intervene to prevent potential cancellations of mortgage or other entries in favour of the applicants.
This decision adds another layer to Bitature’s legal challenges, as the court seeks to maintain the status quo and uphold the ongoing legal proceedings related to the loan dispute with Vantage Mezzanine Fund.
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