NEWS

Wema Bank takes over CMB over N226.5 million debt

&NewLine;<p>A Federal High Court sitting in Lagos has granted Wema  Bank of Nigeria Plc the power either by itself or through its appointed Receiver Manager to take <&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>over and preserve the&NewLine;property of&nbsp&semi; a limited liability company CMB Maintenance &amp&semi; Investment&NewLine;Company used as security to obtain loan that has not been paid&comma; pending the&NewLine;determination of the substantive suit&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;&NewLine;Joined as co-defendant in this debt recovery suit is the company Managing&NewLine;Director&comma; Kelechuckwu Mbagwu&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi;The order of the court was as result of an application file and argued&NewLine;before the court by a Lagos lawyer Barrister Norrison Quakers&comma;SAN&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In an affidavit sworn&NewLine;to by a Relationship Manager of Wema Bank&comma; Mr Henry Alakhume&comma; the deponent averred&NewLine;that by an application dated 24th of March 2014 and signed by Kelechukwu Mbagwu&comma;&NewLine;the company applied to Wema bank for a loan Project Finance Facility in&nbsp&semi;&NewLine;the Real Estate sector&comma; to finance the completion of 17 units of detached&NewLine;duplexes Pearl Garden Estates at Sangotedo&comma; Lagos State and which was granted&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;&NewLine;The security for the facility was agreed to be legal&nbsp&semi; mortgage 7 units&NewLine;detached duplexes 3 blocks located at Pearl Nuga Estate&comma;along Cardinal Anthony&NewLine;Olubunmi Okojie Road&comma; Sangotedo Lekki expressway Lagos State valued at&NewLine;N347&period;2million&comma;being develop&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi;Six other legal mortgages were also created in respect of the properties&NewLine;in the security specified&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi; &nbsp&semi;The defendants drew down on the facility but have since failed to&NewLine;meet repayment obligations and as at January 2017 the sum of N226&comma;496&period;441&period;09&NewLine;only was outstanding and unpaid by the defendants&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;&NewLine;The defendants have refused and neglected to pay their indebtedness despite&NewLine;restructuring it several times while interest has continued to accrue on the&NewLine;debt and the bank has therefore exercise its right to appoint a receiver&NewLine;&sol;Manager as provided under the respective Deeds of legal Mortgages and&NewLine;consequently appointed Mr&period; Gerard Onyiuke as Receiver &sol;manager of the&nbsp&semi;&NewLine;mortgaged properties&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;Mr&NewLine;Alakhume averred further that CMB has become insolvent and unable to repay its&NewLine;debts and that Kelechuckwu Mbagwu as the guarantor as well as the alter ego of&NewLine;the company is similarly unable to repay&nbsp&semi; the debt and the said debt can&NewLine;only be repaid upon the realization of the charged assets of the company&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; By&NewLine;virtue of the appointment of the Receiver Manager requires the sanction and&NewLine;protection of the court to be able to physically take over and assume control&NewLine;of the mortgaged properties as the defendants Will not willingly cede the&NewLine;control of the said mortgaged properties to the Receiver&sol;Manager unless they&NewLine;are compelled&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;&NewLine;The orders sought have become necessary&nbsp&semi; because the mortgaged properties&NewLine;are at the risk of being dissipated by the defendants and are also&nbsp&semi;&NewLine;deteriorating in value so long as Receiver &sol;Manager is unable to take effective&NewLine;control and if Receiver &sol;Manager does not assume control urgently the amount&NewLine;realisable from the properties if at all may not meet the repayment&nbsp&semi; of&NewLine;the sum owed by the defendants&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi;After listening to the argument and submission of Mr&comma; Norrison Quakers&NewLine;SAN&period;&comma; the presiding Judge Ayokunle Faji while restraining Kelechukwu Mbagwu his&NewLine;company and their agents and privies from doing anything obstructing the&NewLine;Receiver&sol;Manager in his lawful execution of his duties or function&comma;granted Wema&NewLine;bank Plc through itself and by its duly appointed Receiver &sol;Manager to take&NewLine;over and preserve the properties of the company&&num;8217&semi;s properties used as security&NewLine;for loan&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;&NewLine;&nbsp&semi;Thereafter&comma; Justice&nbsp&semi; Faji while adjourning till 21st of June&comma; 2019&NewLine;for further hearing also ordered the Inspector General of Police&comma; through&NewLine;the&nbsp&semi; officers and men of the Police Force to provide the bailiffs of the&NewLine;court and the Receiver &sol;Manager with the necessary police protection while they&NewLine;carry out the orders of the court pending the determination of the motion on&NewLine;notice&period;&nbsp&semi;<&sol;p>&NewLine;

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