Karamagi Kabiito takes over management as Steel Rolling Mills goes into receivership
KAMPALA, JULY 12 – Steel Rolling Mills, Uganda’s largest steel miller has lost management control as creditors led by Standard Chartered Bank Uganda placed the firm under receivership.
Although the official announcement was made today, it is understood that Karamagi Kabiito took control of the firm weeks back and has already realigned its operations.
The move comes after a long drawn court battle with Standard Charted Bank as the firm tried to forestall the banks attempts to sell off its assets as part of efforts to recover a Ushs 50billion that had turned into a toxic asset that accounted for roughly half of the bank’s non-performing portfolio.
Initially contracted for a 96 month tenure, the loan was recalled in 2015 forcing SRM to run for protection from the Commercial Court which had also filed a separate case seeking to charge SRM’s assets to recover the loan.
SRM becomes the second Uganda company After WBS which as placed under the management of the same receiver manager – Karamagi Kabiito by the Uganda Revenue Authority of tax arrears worth UShs 7 billion. (Also Read: Why SRM case is a case both for and against a government bailout for distressed Ugandan businesses)