Ecobank Nigeria Limited has dragged a Lagos- businessman, Mr. Victor Osibodu and his company, Vigeo Limited before the Federal High Court, sitting in Lagos, over an alleged N8,701,770,328.83 debt.
The trial which was to commence yesterday could not take place as both parties in the suit agreed to carefully align all the exhibits that would be tendered.
When the matter came up, counsel to Ecobank, Mr. Dapo Akinosun, told the trial judge, Justice Yellin Bogoro that the matter was slated for hearing.
He further informed the court that the bank had 111 exhibits attached to the process.
He added that he had discussed with the defence counsel, Mr. Oyetola Oshobi, on the need to align all the exhibits in order to agree on which of the exhibits that could be tendered together and those that would be objected to in order to save the time of the court.
The defence counsel, Oshobi aligned himself with Akinosun’s submission.
Consequently, both counsel asked for adjournment to enable them reconcile the documents and Justice Bogoro adjourned the matter till March 17th and 30th for commencement of trial.
The crux of the matter was as a result of a $15 million credit facility granted by Ecobank to Vigeo Nigeria limited for the acquisition of all the shares and interest into a motor tug boat known as ‘Lady Margret’ now ‘Vigeo Olufunke’ from a company in Norway.
Ecobank claimed that by a duly executed offer of Multiple Credit Facility dated April 10, 2007, the bank approved the grant of $15 million and $1,750,000 respectively in favour of Vigeo Nigeria Limited.
The bank stated that by another duly executed offer of Multiple Credit Facility, dated April 10, 2007, in three tranches, it granted to Vigeo, the sum of N200 million, N750 million and N350 million respectively for the purpose of working capital and import duty payments with a tenor of 12 months (renewable annually) at the interest rate of 16 percent per annum.
According to the bank, the first defendant, (Vigeo), secured facilities 1,2 & 3 with a lien on shares of blue chips companies estimated at N500 million to be warehoused with the plaintiff, and receipt of irrevocable domiciliation of contract proceeds from oil majors in favour of the bank as well as stocks of goods valued at N150 million.
The plaintiff added that in accordance with the security requirement under the credit facility, dated April 10 2007, (Dollar Facility), the second defendant, (Victor Osibodu), executed a personal guarantee and a duly notarized statement of Net worth dated August 16, 2007.
Furthermore, the bank added that the statement of Net worth provides particulars of Osibodu’s personal assets worth N2,002,400,000 for the security of the loan sums in the event that he defaults in the repayment of the loan.
According to the plaintiff, in fulfilment of the personal guarantee by Osibodu, the Central Securities Clearing System (CSCS) by a letter dated October 30, 2007, confirmed the placement of lien on 25,083,612 units of GTB shares belonging to Osibodu.
It stated that on July 9, 2008, the second defendant resolved at its Board Meeting to request for an additional facility of $ 2, 000,000.00 to finance the dry dock maintenance of the vessel.
Upon consideration of the second Defendant’s request, the Plaintiff made an offer in principle indicating the terms and conditions of the said offer of $2,000,000.00.
The security of the $ 2,000, 000 loan included amongst others, an irrevocable domiciliation of Charter contract proceeds from Knock Allan Pte or their Nominee, the new chatterers of the vessel as well as domiciliation of Charter contract proceeds from SNEPCO.
According to the plaintiff, despite second defendant’s loan obligations, the board of his company at a meeting of May 3, 2009, requested for additional facility of $1million for the purpose of completing the life extension programme of the vessel MV Vigeo Olufunke.
The bank added that due to the inability of the defendants to meet their repayment obligations, the bank on several occasions restructured the facilities yet they could not meet up with the prepayment terms.
Consequently, by a letter dated June 27, 2014, the bank informed the defendants that it’s account had remained non-performing as Osibodu had failed to meet the agreed term.
However, after several meetings between the plaintiff and the defendants over the indebtedness, Ecobank by a letter dated September 2, 2014, informed Vigeo that it current indebtedness stood at N798,202,164.28; $13,547,854.4 as at June 25, 2013 and additional $4,263.24.
Consequently, Ecobank is asking the court for a declaration that the defendants are indebted to it in the sum of $16,886,665.04 and N862, 061, 492.63 being the sum outstanding as at 1st of December 2016, with interest accruing at the agreed interest rate.
The bank is also asking the court for an order of forfeiture of Vigeo House at 6 Osborne Road, Ikoyi Lagos valued at N800 million as at August 2007, an order of forfeiture of 16A Milverton Road, Ikoyi worth N700 million.
“An order granting the Plaintiff ownership, control, disposition and/or lien rights (until and to the extent and purpose of full realisation of the sums) in the event that the properties identified are still insufficient to liquidate the first and second Defendants’ debt.
The bank urged the court to grant the plaintiff control of “All shares held in any companies by the 1st and 2nd Defendants within the Federal Republic of Nigeria
“Cash at hand or cash held in any Bank and/or financial institutions in Nigeria standing to the credit of the first and second defendants among others and general and exceptional damages in the sum of N100 million.”
However, Vigeo in it’s statement of defence stated that Ecobank Transnational Incorporated did not acquire the defunct Oceanic Bank International Plc at all, contesting that any purported acquisition was void, illegal and unenforceable in law.
