The United Bank for Africa (UBA) Plc has taken over the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt, and Kano following an order of the Federal High Court, Lagos, over an alleged N156b debt.
Justice Akintayo Aluko had granted the interim order on Oct. 20, 2023, but the bank’s Receiver Manager, Romeo Michael and court bailiffs protected by the police executed the interim orders in the three cities on Friday, Nov. 10.
Justice Aluko granted the order after hearing the counsel for the bank, Mr Temilolu Adamolekun and Mohammed Usman move the motion ex-parte which was supported by an affidavit in support deposed to by Mr. Anthony Chilaka, in the suit marked FHC/L/CS8/2074/2023.
After hearing the lawyers, Justice Aluko gave the order protecting the receiver manager, Romeo Michael appointed by UBA PLC “to take over the exclusive possession of the mortgaged property known as all that piece or parcel of land together with any building thereon at Plot 371, Trans Amadi Industrial Layout, Port Harcourt, Rivers State…”
“Plot 353, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, Plot 370, Trans Amadi Industrial Layout, Port Harcourt, Rivers state, KM17, Lagos Badagry Expressway, Lagos State…”
and “No. 54, Challawa Industrial Estate, Kano State, Nigeria…”
The order also affects the defendants’ sums totaling N156b in commercial, microfinance, and other financial institutions across the country.
The order subsists pending the hearing and determination of the motion on notice which has been fixed for November 20.
The 1st to 4th plaintiffs/applicants in the suit are UBA Plc, UBA Cameroon SA, UBA Cote D’Ivoire SA, and Romeo Ese Michael, the receiver manager.
Apart from Stallion Nigeria Ltd (which is In Receivership), the other 10 defendants are Von Automobile Nigeria Limited, Popular Farms and Mills Limited, and Havana Nigeria Limited.
The other defendants are KRBL Food Industries Limited, Qingqi Motorcycle Manufacturing Limited, Stallion Auto Keke Limited, Stallion Motors Limited, The Honda Place Limited, Yokohama Construction Limited and Mr. Sunil Vaswani.
The plaintiff/applicants also listed all the commercial banks in Nigeria, Kuda Microfinance Bank, Moneypoint Microfinance Bank, Piggyvest technology Limited, Cowrywise Financial Technology Limited, Opay Digital Services, the Federal Ministry Of Defence and Federal Ministry Of Finance as the 12th to 43rd respondents in a Mareva Order to protect the Res of the suit.
In granting UBA’s prayers, Justice Aluko also restrained the defendants, their directors, shareholders, employees, officers, and agents, from interfering with or frustrating the receiver/manager from exercising all the powers vested in him or performing his duties as receiver of the mortgaged properties.
The court further granted an interim injunction restraining the defendants or anyone else, from tampering with, remaining in, selling, leasing, or dealing in whatsoever manner with any of the defendants’ assets/mortgaged properties covered by the order.
It also granted a mareva injunction restraining the 1st to 11th defendants or their agents from dealing with any of the monies standing to their credit in all of their accounts or howsoever held with the 12th to 41st respondents up to the tune of the N118.6bn or its equivalent in any foreign currency pending the hearing and determination of the motion on notice.
They were also restrained from monies standing to their credit in all of their accounts with the 12th to 41st respondents and also monies standing to its credit in custody of the 1st to 3rd Plaintiffs and their affiliates and subsidiaries in other countries including UBA (Ghana) Limited up to N156b or its equivalent in any foreign currency.
The order also barred the 42nd & 43re respondents, the Federal Ministry of Defence, and the Federal Ministry of Finance from releasing to the defendants or any of their Affiliates, any funds belonging or accruing to any of the defendants, up to N156b.
According to the affidavit deposed to on October 18, 2023, by Chilaka, Group Head, Recovery and Remedial Management Department of the 1st to 3rd plaintiffs companies, UBA in 2014 gave various credit facilities to the first defendant, (Stallion Nigeria Limited).
Both parties agreed that the credit facilities could be used and were used by Stallion’s sister companies, the 2nd to 10th defendants in accordance with the offer letter.
As security for the various loans, the defendants mortgaged their aforementioned assets in Port Harcourt, Lagos, and Kano.
Sunil Vaswani (the 11th defendant and alter ego of Stallion) also made a personal guarantee, among other securities.
Sometime in 2014, Stallion Motors (8th defendant) was awarded a contract by the Federal Government to supply 700 Ashok Leyland trucks/Stallion troop-carrying vehicles and 50 Falcon seater buses to be used by the military.
Stallion Motors financed the contract with funds it secured from UBA through the credit line the bank gave Stallion Nigeria Limited, with the understanding of the parties that the receivables from the Federal Government would be paid into Stallion Account with UBA.
But after delivering the vehicles to the Federal Government, Stallion Motors allegedly directed the government to make the initial payment of $ 50 million into its Dubai account, contrary to the agreement with UBA.
It also allegedly “took steps to surreptitiously” receive another N8.2b into its offshore account.
UBA alleged that despite all the steps it took, Stallion Motors has “continued to divert and dissipate” the monies that should accrue to it from the contract, in breach of the domiciliation agreement.
“Instead of fulfilling their obligations, the 1st and 8th defendants diverted the money/receivables outside Nigeria to places like Dubai, Ghana, and other countries to purchase different properties for their own gains,” adding that the defendants failed to clear their debts totalling N156bn.
CTv
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