BUSINESS

Court appoints liquidator for Chika Okafor’s Chicason Group over N1,3 billion loan

&NewLine;<p>A Federal High Court sitting in Lagos&comma; South West Nigeria&comma; has appointed chief registrar of the court as provisional liquidator of a limited liability  company&comma;  Chicason Nigeria Limited&comma; to take charge of all the identified traceable assets&comma; and funds of the company in banks and other financial institutions pending the hearing and final determination of the winding up petition filed against the company&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The order of the&nbsp&semi; presiding Judge&comma; &nbsp&semi;Nicholas Oweibo&comma; was sequel to a motion on notice filed and argued&nbsp&semi; before&NewLine;the court&comma; urging the court to&NewLine;appoint provisional liquidator for the company&comma; pending the final determination&NewLine;of the winding up petition filed against the company&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In an affidavit sworn to by a litigation officer Chima&NewLine;Chukwuekwe&comma; it was alleged that the petition was presented to wind up Chicason&NewLine;Nigeria Limited due to its inability to liquidate it&&num;8217&semi;s admitted huge&NewLine;outstanding indebtedness to the petitioner&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Chicason Nigeria Limited&comma; was alleged to have obtained&NewLine;N1&comma;380&comma;000&comma;000&period;from defunct Intercontinental bank for the purposes of&NewLine;purchasing machineries and equipment which includes&semi; blow moulding machines&comma;&NewLine;packaging equipment for vegetable oil&comma; soap and detergent lubricants&NewLine;production&comma; conveyor system&comma; tin making and folding equipment amongst other&NewLine;machineries&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In securing the N1&comma;380&comma;000&comma;000&period;loan the company pledged&comma; amongst others&comma; a property located at Plot 3527&comma; &nbsp&semi;off Osun Crescent&comma; Cadastral Zone&comma; A6 Maitama&comma;&NewLine;Abuja&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>However&comma; &nbsp&semi;an attempt to register the aforesaid&NewLine;charge&comma; search conducted revealed that statutory right over the property had&NewLine;been revoked&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>After the disbursement of the huge funds to the company&comma;&NewLine;it became impracticable for the bank to perfect all the securities availed the&NewLine;company&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Thereafter&comma; the respondent in the face of repeated&NewLine;demands failed and variously refused to liquidate the entire huge depositors&&num;8217&semi;&NewLine;funds as at when due at the evolution of the maturity due date&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Following the company&&num;8217&semi;s un-ending default and having&NewLine;suffered various queries from the regulatory Central Bank of Nigeria at the&NewLine;instance of non-performing&nbsp&semi; toxic loans&comma; the bank mandated it&&num;8217&semi;s solicitor&NewLine;to call in the entire indebtedness and issue the&nbsp&semi; requisite statutory&NewLine;demand against the company&period; Intercontinental&NewLine;bank Plc went under as a result of toxic bad debts&period; <&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>It was alleged further that the company is Insolvent and&NewLine;unable to pay it&&num;8217&semi;s&nbsp&semi; just and legitimate debts as demanded&comma; therefore&comma; placing of the company&&num;8217&semi;s assets in&NewLine;the custody of provisional liquidator is to preserve the company&&num;8217&semi;s assets&NewLine;pending the hearing and final determination of the petition to prevent same&NewLine;from being dissipated by the company &&num;8216&semi;s Chairman&comma;its Director&comma; as well as it&&num;8217&semi;s&NewLine;agent and privies&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In his ruling&comma; Justice Oweibo acceded to the request of&NewLine;the petitioner by appointing Chief registrar of Federal high court as&NewLine;provisional liquidator&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Profile of Chicason&NewLine;Group&comma; according to information on its website states that it &nbsp&semi;is a home grown and technology driven&NewLine;conglomerate&comma; with vibrant member companies and affiliated businesses that&NewLine;epitomize the African enterprise spirit with diverse interests in Oil &amp&semi; Gas&NewLine;Trading&comma; Oil &amp&semi; Gas Exploration&comma; Manufacturing&comma; Mining&comma; Real Estate&comma; Project&NewLine;Management&comma; Agriculture&comma; travel&sol;tourism&comma; Health care and Construction&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Founded in 1981&comma;&NewLine;Chicason Group has over the past 36 years built its reputation on the&NewLine;foundation of integrity&comma; commitment&comma; team work and providing great value through&NewLine;great people culture&period; The Group has throughout the years grown into a strong&NewLine;player in its markets and has continued to demonstrate exceptional performance&NewLine;through excellent products and service delivery to our clientele and forming&NewLine;strategic trade relationships with highly reputable companies across the globe&period;<br>&NewLine;Chicason Group is headed by Founder&sol;Group Executive Chairman Dr Alex Chika&NewLine;Okafor&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The Group  brands include A-Z Petroleum Products Limited&comma; Rock of Ages Properties PLC&comma; RIMCO Mining&comma; Cason Travels Limited&comma; RIMCO Nigeria Limited&comma; Afro-Asia Automobile and  Plastics&comma; Promotex Nigeria Limited&comma; among others that may not have been included on the website&period;<&sol;p>&NewLine;

Openlife Reporter

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