The Monrovia Oil Trading Company (MOTC) says it has filed a petition before the Criminal Court to be protected against bankruptcy and to continue doing business in Liberia.
“MOTC has become insolvent and therefore, seeks the desire to be declared as such because MOTC has no means of meeting its obligation to so many of its creditors,” the petitioner alleged.
MOTC, which is one of the parties named by the Judiciary Inquiry Commission (JIC) that allegedly conspired with the lower court Judge to deplete the Ducor’ Petroleum account at the Liberia Bank for Development and Investment (LBDI), in the amount of over US$3 million has filed for insolvency to the Commercial Court.
According to report, on August 31 last year’s petition for insolvency, MOTC alleged that an audit firm, the Crowe Liberia LLC, on December 31, 2020 carried out an audit of its financial statements, at which time it was discovered that the total liabilities was higher than the total assets, and the operating income, which made it impossible for them to run the day to day business, which has continued up to the filing of the petition, which they cannot pay their debt to their creditors.
According to a senior Supreme Court lawyer the reason for the petition is that when granted by the court, there is by law an automatic stay which prohibits most collection activity explaining, “If a creditor continues to try to collect the debt, the creditor may be cited for contempt of court or ordered to pay damages,” the senior legal practitioner said.
In the petition, the MOTC named West Oil Liberia, Srimex Oil and Gas, Petra Energy Geneva, Arkoil Gevena, LPRC Storage and handling, Liberia Bank for Development and Investment (LBDI), International Bank Liberia Limited, Ecobank Liberia Limited, SIBLL, Guaranty Trust Bank Liberia Limited and Global Bank Liberia Limited as their creditors.
It can be recalled that Judge Eva Morgan ordered a freeze action on the Ducor Petroleum account at the Liberia Bank for Development and Investment (LBDI), and the Ecobank Liberia limited.
However, the JIC said, upon request by Cllr. Warner, to unfreeze only the account at the LBDI, where the account had as a bank balance of US$3.4million, as of his July 22, 2013 letter.
Cllr. Warner claimed that his letter was in aid of the smooth operation of the company and immediately, the next day, Judge Morgan gave the unfreezing order on July 23, modifying the same to return the Ducor Petroleum’s escrow account, at LBDI to status quo ante.
The investigation found and established that Judge Morgan proceeded to unfreeze and subsequently returned the Ducor Petroleum’s account domiciled at LBDI on the request of MOTC dated July 24, 2013.
