The Asset Management Corporation of Nigeria AMCON, has got a Federal High court order freezing all the monies due to or lying to the credit of Sayyu Dantata’s oil company MRS Holding limited in 21 banks.
AMCON got the order today in a bid to fulfil the judgement sum of N45.95 billion.
According to an affidavit, MRS Holdings limited was the beneficiary of a syndicated loan by a consortium of Nigerian banks in the sum of USD$540 Million.
The loan was given to the company in 2008, the affidavit by Aishat Lawal from the law firm of Messers Aluko & Oyebode said.
The affidavit was filed before the court by a Lagos lawyer Barrister Adeniyi Adegbonmire SAN, the deponent alleged that
According to the affidavit, the syndicated loan was subsequently classified as non preforming loan and acquired by AMCON.
AMCON in a bid to recover the debt sued Societe Nationals D’Operations Petroliere Cote D’Ivoire & M.R.S.Holiding Limited.
On 4 February 2015 , the presiding Judge Idris Mohammed entered judgement in favour of AMCON and against the defendants in the sum of N16.8 billion.
AMCON on 6 June demanded the payment, giving a 21 day notice to wind up the company, in case of default.
After the notice expired, AMCON commenced winding-up proceedings against the defendant.
AMCON also commenced bankruptcy proceedings against Sayyu Dantata , the Chairman of MRS Holding Limited on the basis of a personal guarantee dated the 17th of September,2008 to repay the sum of $350 Million, in the event of a default by the company.
Subsequent to the commencement of the winding-up proceedings, the MRS undertook in writing to pay to AMCON the sum of N42 billion in quarterly instalments over a period of four years, beginning 1 February,2018.
Specifically, the company agreed to pay a”good faith”sum of N2billion on 1 April 2018 and the rest to be paid at N2.5 billion, every quarter, plus accrued interest of 9 percent.
It also agreed that in the event the company defaults in making the quarterly instalment, AMCON shall be entitled to be paid, the outstanding balance of the compromised judgement debt in the sum of N42 billion only.
The undertaking was encapsulated as terms of settlement which were executed as consent judgement by the court in the winding-up proceedings.
The consent judgement was entered by the court on 22 May,2018.
However, contrary to the terms of settlement the company has only paid to date the sum of N1.7 billion out of the “good faith” sum of N2billion.
The Company has also failed and refused or neglected to pay the agreed quarterly instalment and the accrued interest thereto.
By a letter dated 19 August, 2019 by AMCON’s Solicitors Messers Aluko & Oyebode, AMCON demanded of the company, the payment of the balance on the “good faith” sum and the outstanding quarterly instalments for five quarters, which cumulatively stood at N13,098,343,387.12.
Despite the Company’s receipt of the aforementioned letter of demand, the company has failed to accede to AMCON’s demand.
The total sum due and payable to AMCON by the company pursuant to the terms of settlement and the consent judgement is now N45,956,285,921.70
Consequently, the deponent Aisha Lawal, urged the court in the interest of Justice to grant an order attaching the funds of the company domiciled in 21 banks listed before the court.
The presiding Judge Professor Chuka Austine Obiozor, gave the garnishee order Nisi, on Tuesday, attaching the monies due to or lying to the credit of M.R.S.HOLDINGS LIMITED at the banks listed before the court.
The cost of this Garnishee proceeding shall be N1,000,000, the judge ruled.
The case had suffered several adjournments due to the Covid-19 lockdown and #ENDSARS protests.