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Published On: Thu, May 15th, 2014

NDIC asks court to order payment of N250m All States Trust Bank debt

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NDICBy Ahmed I. Shekarau

The Nigeria Deposit Insurance Corporation (NDIC) on Wednesday asked a Federal High Court sitting in Port Harcourt, the Rivers state capital, to enter judgement in its favour in a debt recovery suit it filed against Ogeyi Place Hotels Limited and one other.

The hotel is owing N250 million it took as loan from the defunct All States Trust Bank Plc, which is currently in liquidation by the NDIC.

The plaintiff, in a motion of notice, filed through its counsel, Ricky Tarfa (SAN) asked the court to deliver judgement in its favour as the defendants failed to file any defence to the suit up till date.

When the matter came up Wednesday for definite hearing, the plaintiff, through its counsel, prayed the court for leave to substitute its witnesses.

The defence counsel, Bright Owhor in his objection, argued that the two motions filed by the plaintiff were not ripe for hearing as he was entitled to more time to file his response to the pending applications.

He further stated that the defendants were still interested in settling the matter out of court.

Consequently, the trial judge, Justice Uche Agomoh adjourned to 11th of June, 2014 for hearing of the pending applications.

The judge advised parties to further explore an amicable means of settling the matter.

It would be recalled that the defunct All States Trust Bank granted the 1st Defendant (Ogeyi Place Hotels Limited) a syndicated loan facility of N250 million to develop a hotel in Port Harcourt.

The sum was made up of a Term Loan of N200 million and an Overdraft facility of N50 million.

The other parties to the syndication were Prudent Bank (now Skye Bank), Merchant Banking Corporation (now First Bank of Nigeria Plc) and First City Monument Bank Limited (FCMB).

The total indebtedness of the 1st Defendant at the closure of the defunct bank in 2006, from both the Term Loan and the Overdraft was N483, 856,915.09.

The facilities were secured by a Deed of Composite Debenture on the fixed and floating assets of the 1st Defendants and a registered Multipartite Deed of Legal Mortgage over property situate at No. 45, Tombia Street, GRA Phase II, Port Harcourt.

All States Trust Bank (in Liquidation) took over the rights and obligations of FCMB in 2002 after FCMB pulled out of the transaction.

The rights and obligations of FCMB were assigned to the defunct bank.

The addition of the defunct bank gave rise to a Supplemental Deed of Composite Debenture and a Supplemental Deed of Legal Mortgage in order to properly assign FCMB’s interests in the collateral to All States Trust Bank (In Liquidation).

The security for the facility is therefore made up of: “A Copy of the Multipartite Deed of Legal Mortgage over No. 45, Tombia Street, GRA Phase II, Port Harcourt, Rivers State, dated the 6th of December, 2001 and registered as No. 38, page 38, in Volume 277 at the Lands Registry Office, in Port Harcourt Rivers State.

“A copy of the Supplemental Deed of Legal Mortgage dated the 15th of April, 2003 and registered at the Corporate Affairs Commission and the Rivers State Geographical Information System at No. 44, page 44, in Volume 288.

“A copy of the Deed of Composite Debenture over the fixed and floating assets of the 1st Defendant dated the 6th of December, 2001, and registered at the Corporate Affairs Commission and, “Original Copy of the stamped Supplemental Deed of Composite Debenture”, documents obtained from court revealed.

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