Union Bank Sues PAN Over N9bn Loan

Union Bank of Nigeria Plc has dragged foremost automobile plant, Peugeot Automobile Nigeria (PAN) Limited, before a Federal High Court in Kaduna for refusing to re-pay the sum of N9 billion credit facility it availed it to embark on business expansion.

In its statement of claim according to BBC report said that the bank is claiming that by several letters in 2003, 2006 and 2008, it granted the defendant’s applications for credit facilities on the terms contained in the letters.

In the statement of claim, which was filed by Miss Mariam Divere Forteta of Charles Musa & Co, the bank (plaintiff) stated that it also granted several guarantees and indemnity facilities on behalf of the defendant on terms contained in the guarantee documents.

It averred that the defendant acknowledged the grants of facilities from the plaintiff by several letters.

It added that the defendant did not make good its obligations to liquidate its indebtedness to it on the terms contained if the facility letters and till date is yet to settle its indebtedness to the plaintiff.

It contended that it wrote various letters demanding liquidation of the debt of the defendant and that in a letter dated 29/12/10 it demanded that the defendant settle its outstanding indebtedness which, as at December 12, 2010, stood at N8.7 billion being the total of direct credit facilities and guarantee it granted the defendant.

The bank argued that the period granted for repayment of the facilities had since expired, adding that for its survival, it depends on the repayment of credit facilities and realization of interest on facilities such as the one granted defendant.