Akin Kuponiyi
A federal high court sitting in Lagos, Southwest Nigeria has restrained the directors and agents of a Limited Liability Company, BSS Steel Rolling Mill, from having access to any sums of money standing to the credit of the company until the sum of N346,798,405,96 plus interest owed by the company to Guaranty Trust Bank is fully liquidated.
The court also restrained the directors and agents of the company from obstructing Mr Norrison Quakers SAN duly appointed by Guaranty Trust Bank from exercising his power and performing his duties as Receiver/Manager over the assets of the company covered by deed all assets of debenture.
The order of the court was sequel to a debt recovery suit filed before it by Mr Norrison Quarkers SAN on behalf of Guaranty Trust Bank, as Receiver/Manager to recover the sum of N346,798,405.95, between 11th of May 2009 and March 2010, the bank granted various credit facilities to BSS Steel Rolling Mills Limited in the sum of #400million, the loan was accepted by Otunba Ayoola Abioye as Chief Executive Officer on behalf of the company.
The loan was secured by all assets of the company.
However,the company could not meet its repayment obligations to the bank and as at January 2012 the indebtedness of the company stood at #346,798,405.95 while interest continues to accrue.
Consequently, the bank appointed Quakers as Receiver/Manager over the assets of the company.
In its defence Otunba Ayoola Abioye alleged that the bank had over charged the company’s interest which is a subject of litigation at a Lagos High Court therefore urged the court to dismiss the suit being an abuse of court process but the bank contended that it filed a counter claim to the said suit claiming the same amount of #346,789,405.95.
After appraising the submissions of both parties the presiding judge, Ibrahim Buba declared that the suit has merit, it was bound to succeed, accordingly all the relief asked for by the bank and its Receiver/Manager were granted to them, while the cost of N250,000 was also awarded in their favour.
Court orders takeover of BSS Steel Mills
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