The International Chamber of Commerce Court of Arbitration in London has reached a decision in the long-standing dispute between Ugandan businessman Patrick Bitature and South African lender Vantage Mezzanine Fund and that Bitature with his wife must pay a sum of $65.7 million (approximately UGX 244 billion) to Vantage Mezzanine Fund as a result of a loan default dating back to 2014.
According to reports we received, it is reported that the legal conflict stemmed from a loan provided by Vantage Mezzanine Fund to Bitature in 2014, intended to support investment ventures including the Moyo Close Apartments and Skyz Hotel projects, both situated in Naguru, Uganda.
Regrettably, Bitature defaulted on the loan, prompting Vantage’s efforts to recover the outstanding amount through various means, including the auction of Bitature’s properties. However, the legal process faced multiple obstructions due to an assortment of legal suits, eventually leading the matter to the International Chamber of Commerce Court of Arbitration in London.
The arbitration proceedings, led by Prof Fidfelis Oditah KC, SAN, culminated in a verdict on July 31, 2023, in favor of Vantage Mezzanine Fund. The ruling requires Patrick Bitature, in his individual capacity, to settle $254 million (approximately UGX 941.4 billion) for breach of contract. Furthermore, Bitature’s associated companies, namely Simba Telecom, Linda Properties Ltd, and Elgon Terrace Hotel Ltd, are collectively mandated to pay $35.8 million (approximately UGX 132.8 billion) to cover outstanding loan balances.
In addition to the financial obligations, the court directed Bitature’s companies to refund an amount of $257,000 (approximately UGX 955 million) in advanced costs and to bear the substantial legal fees incurred by Vantage Mezzanine Fund during the arbitration process.
The underlying issue hinged on Vantage Mezzanine Fund’s assertion that neither Bitature nor Bitature’s associated entities had repaid the loan.
The claimant alleged that Bitature’s obstructionist approach, characterized by the initiation of frivolous and unmeritorious legal proceedings regarding the tribunal’s jurisdiction and the claim’s merits, had impeded the enforcement of securities in Uganda.
