Osun New Secretariat: Contractor In Financial Mess

OpenLife Nigeria reports that a federal high court, sitting in Lagos, has ordered the immediate attachment of funds belonging to an Ibadan based company Derilar Enterprise Nigeria Limited to the tune of N198,061,091.61.
Also affected by the order of the court are,the managing Director and alter ego of the company Chief Dele Ajayi and two Directors of the company Mrs Adenike Ajayi and Mrs Omolara Ajayi who are also shareholders of the company.
The presiding Judge Lewis Allagoa,also ordered AMCON to take interim possession of the two properties at plot 378, Area A2 Wuse I District, FCT covered by a certificate of occupancy No. FCT/ABU/OY.57 registered as No. FC 22 at page 22 in volume 18 of the Land Registry Office at Abuja and property of Chief Dele Ajayi at Iwo Road, Ibadan, Oyo state covered by a Deed of Assignment registered as No. 8 at page 8 in volume 2576 of the Land Registry office at Ibadan used as collateral for the loan.

The order of the court was as a result of an application accompanied by an affidavit sworn to and filed before the court on behalf of Asset management corporation of Nigeria AMCON by a Lagos lawyer Barrister John Duru.
Barrister Duru avers that Derilar Enterprise company is a company duly registered under the laws of Nigeria with its address at N5/871H, opposite Express Over-Head Bridge, Iwo Road, Ibadan, Oyo State.
According to him, the company was a customer of Trans International Bank Plc (now Heritage Bank).
He stated that on the 24th of October, 2000, upon application of the company, a loan facility of N 40,000,000 (forty million naira), was granted to the company by Trans International Bank Plc (now Heritage Bank).
The purpose of the loan was to finance execution of contract awarded by the Osun State Government to the company “for the construction of ‘Type B’ New Secretariat Complex in Osogbo”
The tenor of the facility was for a ten (10) month – period and the aforementioned properties were used as collateral for the credit facility.

The Defendants however, defaulted in repaying same.

As a result of the defaults by the defendants, the bank wrote and sent out several letters demanding the defendants to liquidate their debt,however they failed and/or neglected to do so.
As a result of the default, the loan facility became toxic and was subsequently acquired as Eligible Bank Asset (EBA) by Asset management corporation of Nigeria (AMCON)
by virtue of its statutory powers and functions.

AMCON sent demand notices to the defendants to repay their debts arising from the loan facility granted them
The defendants’ letters dated 4th July, 2014 and 30th September, 2014, addressed to the plaintiff, the contractor actually acknowledged being indebted to the Plaintiff and sought time to offset same.
However, after series of meetings and negotiations, AMCON restructured the loan with the Defendants to the tune of N60m as full and final settlement of the debts.

By the terms of agreement the Plaintiff made it clear to the Defendants that if they defaulted in paying the agreed N60,000,000.00 (Sixty Million Naira) within the stipulated period being 30th September, 2014, the Plaintiff reserved the right to revoke the restructured payment proposal and demand for the entire outstanding sum of N198,061,019.61 (One Hundred and ninety eight million, Sixty One Thousand nineteen naira and Sixty-one kobo).

The Defendants however, failed and neglected to repay the debts despite the concessions from the Planitiff.
With the development, the default of the Defendants has caused serious financial and economic consequences on the activities of the Bank and its customers, who were the actual owners of the money.

Meanwhile, the cost of the action is put at N5m.

However, the presiding Judge,Justice Lewis
Allagoa, after hearing the submission of David Idang counsel for the plaintiff move in terms of motion paper, the court careful consideration of the application and submission of the counsel,It is hereby ordered as follows:
That the order of this court granting leave to the plaintiff to take interim possession of the properties of the defendants at different locations.