Union Bank, Mirchadanis company tango over unpaid loan

From Matthew Aramunde, Lagos

This are indeed not the best of times for Coronation Real Estate Development Company Limited, a member of the Sona Group of Companies owned by the Mirchandani family, as they have found themselves in messy water over an alleged indebtedness to Union Bank of Nigeria Plc.

The debt said to be over N722M, has forced Union Bank to through its Solicitors, Joseph Nwobike (S.A.N) & Co., to file a suit against the embattled company at the Federal High Court.

The suit with No FHC/L/CS/1080/2014 is to seek redress over the company’s failure or refusal to repay a loan granted it to construct a shopping mall in Abuja.

The Federal High Court sitting in Ikoyi, Lagos thereafter granted a Mareva injunction in favour of Union Bank, to restrain Coronation Real Estate, from transferring, withdrawing or otherwise dissipating the funds in any of the company’s accounts in any Nigerian Bank.

The injunction according to the learned Judge was granted to ensure the Company does not further mis-appropriate funds until the final determination of the main suit against the company.

Coronation Real Estate not too pleased with the injunction has, however, filed a motion seeking to discharge the Order of Mareva injunction as well as set aside the main suit at the same court.

The matter has been adjourned to September 9, 2014 to enable the court hear out both parties’ motions.


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