MBARARA: COURT BROKERS PUT BALYA MALL ON SALE OVER UGX 9B BANK LOAN DEFAULT

By our reporter

www.mknewslink.com

In Mbarara

Balya mall which houses Balya stint hardware and other businesses in Mbarara city was yesterday morning sealed off by court brokers in preparation to sell it off after the owner Apollo Balya delayed to pay a 9 billion shillings loan acquired from Orient bank.

In a statement from KT advocates titled “legal brief on Orient bank limited taking over management and possession of Balya mall in Mbarara city comprising plot 5 on Masaka road,33 and 35 Akiiki Nyabongo road, Mbarara district, Orient bank revealed that it extended to Balya stint hardware limited a credit facility of Ugx 9 billion 

The statement further reveals that the loan was acquired by a mortgage on properties loan on value ratio (LRV) 3614 Folio 2 Akiiki Nyabongo road Mbarara district, LRV Mbarara ,77 Folio 19, plot 10 Masaka road and LRV 2941 Folio 18 plot 35 Akiiki Nyabongo road

It also indicates that Balya has on several occasions been served with demand notices which he failed to respect.

“Balya mall /stint hardware located on Mahembe Gente Mbarara -Masaka road , adjacent to Akiiki  Nyabongo road defaulted on repayment of the loan and on 5th June 2019, the Orient bank served the debtor  with a demand notice but he failed to comply ,on 16th August,2019 the bank again served the debtor with a notice of default and on 16-18 Nov,2019 the bank served him with a notice of sale.”says the statement

“The property was subsequently advertised for sale on Friday ,March ,13th ,2020 but he also didn’t comply .The events of the default happened before covid 19 pandemic and there fore the measures and directives that were put in place by Bank of Uganda to mitigate the impact of the pandemic didn’t comply to the debtors ,” It stresses .

Efforts to get a comment from tycoon Balya were futile.

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