Kwara monarch sued over N11.2bn debt

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OrijoReporter.com, Oba Mufutau Gbadamosi

The Olofa of Offa in Kwara State, Oba Mufutau Gbadamosi, and his two firms, Zarm Poultry and Feeds Mills Limited and Zarm Stores Limited have been dragged to a Federal High Court in Lagos over alleged N11.2 billion debt.

Read also: MONARCH OWES BANK N3BN

Their accuser is the Asset Management Corporation of Nigeria (AMCON).

In a statement of claim filed through its lawyer, Osayaba Omorodion Giwa Osagie, AMCON disclosed that pursuant to its enabling Act, it purchased certain eligible assets of the defunct Oceanic Bank in the sum of N1,859,654,737.00 and N4,586,369,001.47 respectively sometimes in 2012.

AMCON claimed that as at April 8, 2017, one of the monarch’s firms, Zarm Poultry and Feeds Mills owed it N3,027,486,610.59 being the unpaid principal and interest on a term loan facility of N2.3 billion granted the firm by the defunct Oceanic Bank Plc., sometimes in 2006 to finance capital expenditure on its farm at Odonla, Ikorodu, Lagos, New Telegraph reports.

The paper according to the document in its possession, the term loan was said to have been secured by the execution of a debenture deed over fixed and floating assets of the firm, which included the execution of a deed legal mortgage over a property described as; Plots 407 and 408, Odonla Industrial Estate, Opposite LSPDC Housing Estate, Odonla, Ikorodu Lagos.

The report said AMCON further claimed that as at April 8, 2017, the second firm of the monarch, Zarm Stores Limited, also owed it N8,253,512,349.19 being the unpaid principal and interests on a restructured term loan facility of N3,055,764,554.71 granted to the firm by the bank in 2009.

The loan was said to have been further restructured to N4,462,589,667.33 to accommodate the debts arising from unpaid facilities granted to the subsidiaries of Zarm Stores Limited. It was claimed that the further restructured loan was secured by a legal mortgage over a piece of land measuring 818.058 square meters, being Block 1b, Osborne Phase 1, Lagos and the personal guarantee of the monarch, who is the Chief Executive Officer and majority subscriber to the shares of the two firms.

AMCON alleged that the defendants have not made any payments since the debts were assigned to it despite several discussions and negotiations between the parties, even as the period stipulated for repayment of the banking facilities have since elapsed. Consequently, the claimant (AMCON) is seeking a court’s declaration that Zarm Poultry and Feeds Mills Limited is indebted to it in the sum of N3,027,486,610.59 with interest thereon at the rate of 21 per cent per annum from April 9, 2017 until judgement and thereafter at the rate of 10 per cent until total liquidation.

It is also seeking a declaration that Zarm Stores Limited is indebted to it in the sum of N8,253,512,349.19 with interest thereon at the rate of 21 percent per annum from May 1, 2017 until judgement and thereafter at the rate of 10 per cent until total liquidation.

The claimant is also praying for an order foreclosing mortgages arrangements of the defendants with the bank on Plots 407 and 408, Odonla Industrial Estate, opposite LSPDC Housing Estate, Odonla, Ikorodu, Lagos and the piece of land measuring approximately 818.058 square meters being Block 1b, Osborne Phase 1, Lagos.

Besides, AMCON is also seeking an order attaching the amount standing to the credits of the defendants in all financial institutions in Nigeria in satisfaction of the two firms’ debt. The defendants are yet to file their defence to the suit.

Source: New Telegraph

 

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