3 Nollywood Producers In Trouble Over N435 Million Debt

3 Nollywood Producers In Trouble Over N435 Million Debt

OpenLife Nigeria reports that three movie producers have been dragged to court over N435 million unpaid debt.
In a bid to recover the debt, totaling N435,480,241.20, Asset management Corporation of Nigeria, AMCON, has dragged the three movie producers, namely: Charles Osa Novia, Amata Fred Okaruere, Duker Fidelis and their company, Project Nollywood Production Limited, before a Federal High Court in Lagos.
According to a statement of claim accompanied with claimant’s witness written statement on oath sworn to by officer of credit Enforcement unit of AMCON, Mrs Afiniki Oyedele-Lawal and filed before the court by the law firm of MacMilton, it was alleged that the Project Nollywood Production Limited Company was a customer of Eco Bank Nigeria Plc.
The Bank, via a duly accepted Offer Letter, dated March 28, 2007, granted the defendant a Term Loan Facility, secured by debenture on the fixed and floating assets of the Project Nollywood Production Limited Company
In the agreement, there was lien on Master Tapes of all films produced under this Facility; assignment of copyright to all films produced under this Facility; warehousing of all finished Compact Discs (CDs), Video Compact Discs (VCD), Digital Video Discs (DVD) etc produced as well as
Promissory note of the company.
The terms also included Personal Guarantees of all the directors of the Company supported by statement of net worth; irrevocable Domiciliation of sale proceeds with the Bank/Sales Collection Agreement; comprehensive insurance on all assets of the company with the bank noted as first loss payee.
The offer was duly executed by Charles Osa Novia Amata Fred Okaruere as directors of the Project Nollywood Production Limited Company
By a Letter dated February 10th, 2010 and duly signed by Duker Fidelis as a Director,the defendants proposed a repayment plan for the loan.
By a Letter dated May 26, 2010, the defendants indicated their inability to maintain the repayment plan they had earlier proposed.
The inability of the defendants to repay the loan led to the acquisition of the loan by the AMCON as a non-performing loan.
AMCON wrote demand letter to the defendants without any response from the defendants.
The balance the defendants owns AMCON stands in the sum of 435,480,241.20 (Four Hundred and Thirty-Five Million, Four Hundred and Eighty Thousand, Two Hundred and Forty-One Naira, Twenty Kobo) as at April 29, 2022 on which interest continues to accrue.
However, apart from the N435,480,241.20 , being outstanding debt as at April 29, 2022, there is interest at the rate of 15% per annum on the said sum from April 29, 2022 until judgment is delivered.
There is also interest at the rate of 10% per annum on the judgment sum from the date of entry of final judgment in the suit until the said judgment sum is fully and finally liquidated as well as an order, directing the defendants to pay AMCON the cost of this action in the sum of N5 Million.
Meanwhile, the presiding Judge, Chukwujekwu Aneke, has adjourned the suit till 10th of May,2023 for hearing.