N2.6bn Debt: Bank Seeks Court Order To Take Over Firm

Guest Speaker, Mr. David Imonitee, (right), addresing participants during a seminar to enlignten the public on Orgarma Gold product at Chrismax Hotel, Eagle Island, Port Harcourt , yesterday. Photo: Nwuieh Donatus Ken

Access Bank Plc has filed
a petition before a Federal High Court in Lagos against Tower Aluminium Nigeria Plc over an alleged debt of N2.6 billion.
The bank, in the said petition is seeking an order of the court appointing the Chief Registrar of the federal High Court or any insolvency or accounting expert, as the provisional liquidator of Tower Aluminium Nigeria Plc.
It prayed the court to empower the said appointed provisional liquidator to take charge of “ all identifiable and traceable assets, properties and funds in banks within and outside Nigeria” belonging to Tower Aluminium.
It also sought an order restraining the respondent from “transferring or dissipating its assets, and an order restraining it from interfering with or disturbing the provisional liquidator to be appointed.”
It also sought an order of interlocutory injunction to take over finished goods, raw materials and assets of Tower Aluminium at its offices at Oba Akran Avenue, Ikeja, Lagos and Ogun State Housing Corporation’s Industrial Estate, Ota, pending the determination of the suits.
“Placing the respondent’s assets in the custody of a provisional liquidator is to preserve the respondent’s assets pending the hearing and determination of the petition to prevent same from being dissipated by the respondent’s directors, agents and privies, the bank averred.
But Tower Aluminium has urged the court to either strike or dismiss the bank’s petition on the ground that it did not satisfy the conditions that should precede the action.
In its petition, Access Bank claimed that the aluminium company is indebted to it in the sum of N2,660,812,752.42.
It claimed to have in 2011, given the aluminuim company sums of $20m and N800m to finance the importation of cold rolled steel sheets and aluminuiminots to augment its working capitals.
According to the bank, the parties agreed to payment period of 180 days.
The bank, however, alleged in its suit that the company had neglected and flagrantly refused to liquidate the depositors funds made available to it, even after the loan was restructured.
But Tower Aluminium urged the court to refuse all the prayers sought by the bank.
It called the court’s attention to existence of “no action” clauses which it said indicated that the bank lacked the locus standi to institute the action.
“The petitioner failed to issue the requisite statutory notice/letter of demand provided for under section 409 (a) of the companies and Allied Matters Act.
“The alleged debt purportedly owed by the respondent are not due and payable,” Tower Aluminium said.
The presiding judge, Justic  Mojisola  Olateregun-Ishola, urged parties to “look into the issue of settlement” failing which the matter would be slated for hearing.
She adjourned till March 3, 2016.