Lebanese run United Steel Company owes the Ghana Revenue Authority GH¢649 million in unpaid taxes.
The heavily indebted steel products maker also owes nine banks and many creditors several millions of Ghana cedis, bringing its total debt burden to GH¢1.6 billion as at 2020.
The Company has therefore plunged into administration, according to documents sighted by the Ghana News Agency.
A group of administrators chaired by Mr Felix Addo has taken over the management of the company and will determine as soon as possible the fate of the once toasted company in the steel sector.
Options available to the administrator include the termination in part or whole of the company
The group which includes Law Professor Emeritus Fiadjoe, is being guided by the Corporate Insolvency and Restructuring Act.
In an interview with Mr Jonas Ayi, a consultant, who spoke on behalf of the administrator, said,” Our mandate is derived from Corporate Insolvency and Restructuring Act. We will ensure all that is payable to laid off personnel are (done) in accordance with the law.”
On whether the company will be liquidated, he said,” Our answer is that this is the decision for the creditors of the company. This decision will be made at the next adjourned watershed meeting.”
The United Steel Company has an installed capacity of 180,000 metric tonnes with a workforce of 489. Its shareholders include Abdul Majeed Mikati, Sameer Quraman and Frank Ofori.
Both former management of the Company and the Ghana Revenue Authority could not be reached for comment.