Bitature wins interim reprieve in $10m Vantage loan battle

KAMPALA: The Supreme Court has granted an interim order staying execution of a Court of Appeal decision that struck out an appeal by businessman Patrick Bitature, his companies, and associates in their long-running loan dispute with South African investment firm, Vantage Mezzaine Fund II Partneship.

Justice Elizabeth Musoke, sitting as a single justice, issued an interim order halting the enforcement of an August Court of Appeal ruling that had cleared the way for Vantage to seize mortgaged assets and enforce the loan agreement.

The order preserves the status quo while the Supreme Court considers Simba’s substantive application for a full stay of execution and potential leave to appeal the Court of Appeal’s decision.

The dispute stems from a 2014 facility extended by Vantage to Simba Properties Investment Co. Ltd., with guarantees from other Simba Group entities and personal guarantees from Patrick and Carol Bitature. The loan was secured against prime real estate and equity holdings.

Following an alleged default, Vantage pursued arbitration under the London International Chamber of Commerce (ICC), securing a final award in its favor in July 2023.

Vantage subsequently moved to enforce the award in Uganda, obtaining High Court injunctions to prevent Simba from altering ownership structures or disposing of the mortgaged assets. Simba challenged these injunctions, but the Court of Appeal in August 2025 sided with Vantage, ruling that Uganda’s Arbitration and Conciliation Act bars appeals against such interim orders.

In granting the temporary relief, Justice Musoke dismissed Vantage’s arguments that there was no imminent threat of enforcement, stating that it was a “reasonable inference” that any successful party would have an interest in “immediate execution of the decree.”

“I find incredible the suggestion… that the lenders do not have any intention to imminently execute the decree,” she wrote in her ruling.

The interim stay offers a crucial “breathing space” for Bitature’s empire, which spans telecommunications, hospitality, and real estate. Bitature has previously argued that COVID-19 restrictions severely impacted his companies’ cash flows, hindering their ability to meet repayment timelines.

The ongoing legal battle is being closely watched by the international investment community as it underscores the tension between foreign private equity and mezzanine financiers and local corporations in East Africa. The ultimate Supreme Court decision will set a key precedent for Uganda’s arbitration framework and its attractiveness to cross-border lenders.

“The main purpose of an interim order is preservation of the status quo to avoid rendering nugatory the determination of the substantive application for stay of execution and the appeal itself,” Justice Musoke wrote.