N1.3bn Debt: Court Stops Murtala’s Son From Operating Bank Account By OLUGBENGA SOYELE — Oct 20, 2014 | Leave a comment For allegedly failing to liquidate a N1.365billion credit facility, a Federal High Court in Lagos has barred Risqua Mohammed, son of late head of state, General Murtala Mohammed from withdrawing funds from his accounts in any of the financial institutions in Nigeria. Justice Saliu Saidu granted the mareva injunction while ruling on a debt recovery suit filed against Mohammed and his company, AMG Petroenergy Limited by Guaranty Trust Bank Plc (GTB). Specifically, the court warned the two defendants in the case not to tamper with their funds in any financial institution in Nigeria pending the hearing and determination of the suit. Justice Saidu also restrained the defendants and their agents from tampering with or withdrawing N1, 365, 470, 643.46k pending the determination of the motion on notice. The bank had claimed that on May 18, 2011, it granted two import finance credit facilities in the sum of $40million to the defendants, with an additional existing loan of N630million. Justice Saidu has adjourned the case till November 3, 2014. According to the bank the credit facilities was for the purpose of financing the establishment of local letters of credit in favour of NLNG, NNPC/PPMC and NGL to fund the payment of Gas/ Condensate/Naphtha lifted based on allocation to the company by the Federal Government. The bank also stated that the credit facilities were also used to finance the establishment of letters of credit for the purchase of refined petroleum products from international and local sources for onward supply to Total Plc, Mobil Oil Plc, Exxon Mobil and Total Upstream. The facilities were further meant to accommodate associated freight and logistics costs, as well as refinancing the existing debts of the first defendant (AMG Petroenergy Limited). The plaintiff alleged that Mohammed as the Chairman and Managing Director of the first defendant personally pledged to pay the the credit facilities. However, trouble started upon the expiration of the tenure of the credit facilities in August 2012 when the defendants failed to meet their obligations of repayment, despite repeated demands. While justifying the suit, GTB’s counsel, Norrison Quakers (SAN) argued that it was evident from the actions of the defendants that they were not prepared to liquidate their outstanding debt which now stand at N1.365 billion, while interest continues to accrue at the bank’s lending rate. “The balance of convenience is on the side of the plaintiff/applicant (GTB) as the defendants’ indebtedness to the plaintiff runs into billions of naira, which have remained due and unpaid despite several demands, as a result of which the plaintiff states that it will suffer greater hardship if the defendants are not restrained in terms of this application, particularly against the backdrop that shareholders and depositors’ funds are in issue. “The plaintiff cannot allow this flagrant violation of the dendants obligations to continue as it’s depositors and shareholders’ funds are at risk,” Quakers stressed. The bank had also promised to indemnify the defendants in the unlikely event that the order ought not to have been made.
Posted on: Mon, 20 Oct 2014 05:14:34 +0000
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