By Our Reporter
The Pepper Publications recently suspended publication of Hello, Akapapula and Emulalu subsidiary tabloids after majority of staff left the company over accumulated salary arrears. As the publication grapples with collapsing copy sales and dwindling advertisement revenues, Stanbic bank’s action could push the tabloid to the edge of bankruptcy. Sources are telling this website that the Pepper Publications sold its Shs 5bn Crane Bank loan to Stanbic before directors picking an extra Shs 2.5bn for luxury cars. Unfortunately, the tabloid has fallen short of honouring its financial obligations, compelling the bank to take drastic measures.
Recalling a loan means that the bank wants their money ‘now.’ This usually happens when the contract has been breached in some way by the borrower. This situation means that the entire loan balance becomes due and payable right away. They can only “do it” if the loan contract so allows – which some do under specific conditions.
Failure to pay means The Pepper Publications will have to get another bank to make over the loan. SOURCES said staff at the tabloid is worried about the future of the publication as most of the meager revenues coming in end up in the pockets of directors. “What we are witnessing now is milking a rock. We have gone six months without pay.
The Directors eat every money that comes in – whether sales or advertisement. The company has been eaten to bones,” said a staff who asked us to shelve his identity. “Everyone is leaving, save for those who are desperate or lack academic papers to work in other companies. Never before had we seen such a desperate situation at our offices. No one including the bosses, see hope in future.”