FINANCE

Nigerian drags Dubai bank to court over bogus interest

&NewLine;<p><strong> <&sol;strong>In a bid to safeguard his business interest against alleged excessive and bogus interest charges&comma;  a Dubai based Nigerian businessman&comma;Adedoyin Adeyinka alongside his two companies UNICO MARINE DWC LLC&comma; and ELIZABETH SHIPPING LTD have dragged Dubai United Arab Emirates Bank&comma; National Bank of Fujairah PJSC&comma; before a federal high court in Lagos South West Nigeria&period; <&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi; In a statement of claim accompanied with statement on oath of Mr&period;&NewLine;Adedoyin Adeyinka&nbsp&semi; filed before the court on behalf of the plaintiffs by Barrister&NewLine;Ikechukwu Ukadike&comma; the plaintiffs stated that &nbsp&semi;a facility agreement dated 28th November 2016&comma;&NewLine;the National Bank&nbsp&semi; of&NewLine;Fujirah Pjsc of Dubai&comma; as lender&comma;&NewLine;agreed to provide two facilities jointly for vessels namely MT&period; &OpenCurlyDoubleQuote;LADY&NewLine;ELIZABETH” and MT &OpenCurlyDoubleQuote;CLOVER SKY” jointly in the&nbsp&semi; &nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi;sum&nbsp&semi; &nbsp&semi; &nbsp&semi; &nbsp&semi;of&nbsp&semi; &nbsp&semi; AED&nbsp&semi;&NewLine;&nbsp&semi;26&comma;141&comma;050&comma;equivalent of USD 7&comma;113&comma;210&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;&NewLine;&nbsp&semi;&nbsp&semi;Out of the above facility&comma; a total of USD3&period; 850&period;000 was lent by the&NewLine;bank for the refinancing of the MT&period; &OpenCurlyDoubleQuote;LADY ELIZABETH” while the balance was for&NewLine;a separate MT &OpenCurlyDoubleQuote;CLOVER SKY”<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;By a&NewLine;valuation report of&nbsp&semi;&nbsp&semi;the MT&period; &OpenCurlyDoubleQuote;LADY ELIZABETH” carried out by the&NewLine;bank&comma; the bank valued the MT&period; &OpenCurlyDoubleQuote;LADY ELIZABETH”&nbsp&semi;VESSEL&rpar; for a total of USD&NewLine;5&comma;500&comma;000&period;&comma;while the defendant bank refinanced the MT&period; &OpenCurlyDoubleQuote;LADY ELIZABETH” in the&NewLine;sum of approximately USD 3&comma;850&comma;000&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The said facility&NewLine;was to be repaid over 9 years&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; By&NewLine;virtue of the said facility&comma; a ship mortgage was created for the MT&period;&NewLine;&OpenCurlyDoubleQuote;LADY ELIZABETH” in favour of the bank&nbsp&semi; and subsequently registered in&NewLine;Liberia as a first preferred Liberia ship mortgage&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi;By another offer letter dated 29th March 2018&comma;&NewLine;the defendant bank offered to restructure the facility for another 10 years&NewLine;under similar terms and conditions&period;&NewLine;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;The&NewLine;following documents are all pleaded in support of this application&comma; Credit facilities Agreement&semi;&nbsp&semi;&nbsp&semi;First preferred Liberian ship mortgage&semi; Share&NewLine;security&nbsp&semi;Agreement&semi; Memorandum of particulars of a first Liberia&NewLine;Ship mortgage&semi; Certificate of ownership and encumbrance of a&NewLine;vessel registered under the Liberian flag&semi; Letter of amendments&NewLine;to banking facilities&semi; Guarantee unlimited and &nbsp&semi;Latter of the 1st bank dated 29th March<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The said MT &OpenCurlyDoubleQuote;LADY&NewLine;ELIZABETH” as well as the shares of&NewLine;the two plaintiff Companies&nbsp&semi;were&NewLine;pledged as security for the mortgage&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;&NewLine;After the said facility was granted&comma; the plaintiffs made several payments to the&NewLine;bank&nbsp&semi; towards liquidating the&nbsp&semi;&nbsp&semi;said facility up to USD1&comma;722&comma;855&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;At&NewLine;all times material to this suit&comma; the said vessel is beneficially owned by the&NewLine;UNICO MARINE DWC LLC Company and under the control and&nbsp&semi;possession of the plaintiffs&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;The&NewLine;plaintiffs were fulfilling their obligation to the defendant bank until&NewLine;sometimes in June 2017 when the vessel suffered major machinery failures and&NewLine;while efforts were being made to repair her and put her back to trade&comma; local&NewLine;vendors and suppliers arrested her for outstanding bills rendering the vessel&NewLine;unable to trade till date&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The&nbsp&semi; claims&NewLine;of the various vendors are pending both in Lagos and Port Harcourt Division of&NewLine;the&nbsp&semi; Court&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;&NewLine;Interestingly&comma; the plaintiffs duly carried the defendant&NewLine;bank along and promptly notified it of all the challenges the Vessel is facing&NewLine;in Nigeria but the&nbsp&semi; bank was reluctant to show any support and instead&NewLine;proceeded to overcharge the Plaintiff with bogus interest contrary to good&NewLine;faith and the letters and spirit of all&nbsp&semi;&nbsp&semi;the facility agreements and&NewLine;understanding between the two parties thereby creating a bigger burden&NewLine;for&nbsp&semi;&nbsp&semi;the plaintiffs and making it even more difficult and burdensome&NewLine;to liquidate the residue of the loan facility&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; The&NewLine;plaintiffs&nbsp&semi; made frantic efforts to secure third party bare boat&NewLine;charterers who can charter the vessel and settle the outstanding bills of local&NewLine;vendors in Nigeria&period; The said efforts were dully brought to the attention of the&NewLine;defendant bank&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>However&comma;&NewLine;when the bareboat charter arrangement could not immediately materialize the&NewLine;plaintiffs&comma; particularly Mr Adeyinka Adedoyin&nbsp&semi; took the bull by the horn&NewLine;and raised the sum of USD 122&comma;026&period;88&nbsp&semi;with which the claim of the&nbsp&semi;&NewLine;ASSURANCE&nbsp&semi; of the Vessel was amicably settled out of court and the vessel&NewLine;released from arrest in March 2019&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; The&NewLine;plaintiffs have also agreed to settle the other vendor’s claims amicably so that the vessel can be taken for a dry dock routine maintenance and&NewLine;resume trading&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; The&NewLine;defendant bank is well aware that the only source of servicing and liquidating&NewLine;the facility and mortgage was freight and proceeds from the ships trading and&NewLine;if she continued to lay idle she cannot earn money yet the bank &nbsp&semi;turned it down&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;&NewLine;&nbsp&semi;Instead&comma; the defendant bank inflated and continued to&NewLine;charge bogus interest&comma; thereby&NewLine;compounding the &nbsp&semi;problems&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Aside the sum of&NewLine;USD 191&comma; 001 &period;13&comma; the plaintiffs have paid to the defendant bank&comma; the bank&NewLine;conjured up a further unsubstantiated interest of USD 425&comma;000&period;00&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;The&NewLine;plaintiffs made an equity contribution of USD 1&comma; 650&comma;000&nbsp&semi; to the defendant&NewLine;bank in order to secure the facility herein&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;&NewLine;Apart from the equity contribution aforesaid&comma; the plaintiffs have paid a total&NewLine;of USD1&comma; 722&comma;855&period;as principal and USD 191&comma;001&comma; as interest to the defendant&NewLine;bank in repayment of the facility and spent a total of USD3&comma;900&comma;000&nbsp&semi;&NewLine;towards maintenance and general operating cost of running the vessel till date&NewLine;which brings the plaintiffs investments in the vessel to a total of&NewLine;USD7&comma;463&comma;856&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;By&NewLine;the recent conduct of the&NewLine;defendant bank&comma; there is&NewLine;imminent risk and danger that they want to take steps to remove the said vessel from the Jurisdiction of the Court and or sell her off abroad under the&NewLine;guise of enforcing the said mortgage&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The grounds for&NewLine;believing that the defendant bank is secretly taking steps that will be adverse&NewLine;to the interest of the plaintiffs and make them lose all their investments in&NewLine;the vessel are as follow&colon;-<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>On the 23rd of&NewLine;January 2019 the defendant bank appointed a surveyor to go on board to inspect&NewLine;and value the vessel current market value and requested the permission of the&NewLine;plaintiffs&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;Despite&NewLine;repeated requests by the plaintiffs for the defendant bank to provide details&NewLine;of their Nigerian appointed solicitors so as to work at common purpose with the&NewLine;plaintiffs Nigerian solicitors herein in the interest of the vessel&comma; the&NewLine;defendant bank has refused and consistently kept the plaintiffs in the dark&NewLine;with their plans&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;On the 16th&nbsp&semi;of April 2019 the master CAPTAIN OKPAKA CROMWELL of the subject&NewLine;vessel MT&period; &OpenCurlyDoubleQuote;LADY ELIZABETH” sighted unknown person who approaches the vessel at&NewLine;sea and were taking pictures of her and when they were accosted by the master&NewLine;they claimed to be acting on the instruction of an undisclosed foreign buyer&NewLine;who was in talks with the defendant bank to inspect the vessel preparatory to&NewLine;being taken out of jurisdiction of the &nbsp&semi;court&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>The bank has shown by conduct desire to remove the vessel from Nigeria or sell her off outright without&NewLine;notice to the plaintiffs&period;&nbsp&semi;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; In breach&NewLine;of the mortgage and facility agreement between the parties&comma; &nbsp&semi;the &nbsp&semi;bank is poised to size the vessel and remove&NewLine;the vessel from Nigeria by subterfuge for a facility that still has 9 years to&NewLine;run&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; The&NewLine;vessel herein is a moving asset that can be easily removed from the Nigeria&NewLine;territorial waters within a very short time and without formal notice to the&NewLine;plaintiffs&comma; as&nbsp&semi;the vessel is presently offshore&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;&NewLine;There is real likelihood of the bank removing the vessel herein from within jurisdiction of the &nbsp&semi;court&comma;&NewLine;thus rendering any judgment which the plaintiff may obtain nugatory&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>That all attempts&NewLine;the plaintiffs have made to reconcile accounts have proved abortive&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi;Consequently&comma; the plaintiffs are urging the court to order the bank to refund overpaid interest already charge&NewLine;and&nbsp&semi;collected in the sum of&nbsp&semi; USD 85&comma;500&period;00&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>A declaration&NewLine;that the plaintiffs are entitled to equitable&nbsp&semi;right of redemption of the&NewLine;mortgaged security herein &lpar;the vessel MT &OpenCurlyDoubleQuote;LADY ELIZABETH”&rpar;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi;A&NewLine;declaration that the right of the mortgage to enforce the said mortgage has not&NewLine;risen&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Meanwhile&comma; based&NewLine;on an application filed and argued before the court by Barrister Ikechukwu&NewLine;Ukadike&comma; urging the court to restrain the bank from tampering or removing the&NewLine;Vessel from the jurisdiction of the court&comma; the presiding judge&comma;&NewLine;Saliu Saidu in his ruling&comma;&nbsp&semi; has restrained the bank from tampering or removing the Vessel from Nigeria&nbsp&semi;&NewLine;pending the final determination of this suit&period;&nbsp&semi;<&sol;p>&NewLine;

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