First Atlantic Bank Limited (FAB) has petitioned the Commercial Division of the High Court in Accra to wind up Kenpong Travel and Tour Limited over an unpaid court-ordered debt exceeding GH¢2.5 million.
The petition, filed under the Corporate Insolvency and Restructuring Act, 2020 (Act 1015), seeks an order to place the company into liquidation and allow its assets to be realised to settle the outstanding debt.
The move marks the latest development in a protracted legal dispute between the bank and the travel company, which is owned by businessman Kennedy Agyapong.
According to court documents, First Atlantic Bank argues that Kenpong Travel and Tour Limited has failed to satisfy a judgment debt awarded in the bank’s favour nearly four years ago, despite several attempts to enforce the court’s ruling.
The bank maintains that the company has demonstrated an inability to meet its financial obligations and is therefore insolvent under the provisions of Ghana’s insolvency laws.
Kenpong Travel, which was incorporated in October 2013, operates in tourism promotion, ticketing, reservations and car rental services. Court filings indicate that the company has an authorised share capital of GH¢1 million and a paid-up capital of GH¢60,000, with Kennedy Agyapong serving as the sole shareholder and one of its directors.
The dispute dates back to 2019 when First Atlantic Bank initiated legal proceedings against Kenpong Travel and five other parties. The High Court subsequently delivered judgment in favour of the bank on August 15, 2022.
According to the petition, the outstanding debt currently stands at GH¢2,549,969.28, excluding accrued interest at prevailing commercial rates and an additional GH¢20,000 in legal costs awarded by the court.
First Atlantic Bank further alleges that since the judgment was delivered, Kenpong Travel and its associates have filed multiple applications seeking to halt enforcement of the ruling. The bank claims that nine separate attempts were made through various courts, including proceedings that reached the Supreme Court on two occasions, but none succeeded.
The bank contends that these legal challenges only delayed the recovery process and that the company has neither presented a viable repayment plan nor provided acceptable security to guarantee payment of the debt.
A key aspect of the petition centres on the company’s financial position and asset base. First Atlantic Bank argues that efforts to identify assets capable of satisfying the judgment debt have produced limited results and that the company has failed to demonstrate its ability to settle the amount owed.
The petition also alleges deficiencies in documentation connected to the original loan arrangement, claiming the Lands Commission was unable to register the relevant security documents as a mortgage.
Consequently, the bank is asking the court to order the official winding up of Kenpong Travel and Tour Limited, authorise the realisation of its assets to settle the debt, and restrain the company’s directors from disposing of or encumbering its assets while the matter is pending.
The bank is also seeking an award of costs and any additional relief the court may deem appropriate.
If the petition is granted, the court could appoint an insolvency practitioner to take control of the company’s affairs, assess its assets and liabilities, and oversee the settlement of creditor claims in accordance with Ghana’s insolvency framework.
The Commercial Division of the High Court is expected to hear the matter on a date yet to be announced.
As of the time of filing this report, Kenpong Travel and Tour Limited had not publicly responded to the petition.