The Assets Management Corporation of Nigeria, AMCON has dragged former Director of Intercontinental Bank Plc, Christopher Alabi, the group chairman of Caronc Holdings and five others before a Lagos division of Federal High Court.
The five other defendants in the debt recovery suit are, two limited liability companies Stanzus Investment Limited, Caronc Investment Limited, and three Directors of Stanzus Investment company namely, Stanley Ezenwa, Zephrenus Ezenwa, and Chinwe Hilda Ezenwa Mbah
According to statement of claim accompanied with witness statement on oath of AMCON enforcement officer Hadibu Kabir and filed before the court by Barrister Nasir Salawu, the deponent avers thus:
On October 6th, 2006, Stanzus Investment Limited company who needed funds/capital to ease her working capital constraints applied to Intercontinental Bank Plc for credit facility of the sum of N2,200,000.000 (Two Billion, Two Hundred Million Naira Only).
Intercontinental Bank Plc approved the credit facilities to the company through an offer letter containing terms and conditions. The offer letter dated 21st of October, 2006 for which terms and conditions were duly accepted by the company.
In guaranteeing the loan facility and as security for the said loan facility, an associated company of the company, CARONC INVESTMENTS LIMITED authorized Intercontinental Bank Plc to apply all dividends and bonuses of their shares pledged as re-payment of the loan facility in the event of default by the company.
The company, applied for an extension of an overdraft of N 2,274,451,562.22 (Two Billion, Two Hundred and Seventy Four Million, Four Hundred and Fifty-One Thousand, Five Hundred and Sixty-Two Naira, Twenty -Two Kobo) to enable her to liquidate its outstanding indebtedness to Intercontinental Bank Plc,the bank approved the Facilities to the company through an offer letter dated 23rd January,2009 containing terms and conditions, which terms and condition were duly accepted by the company.
Stanzus Investment Limited company further apply for an extension of an overdraft facility of N2,679,641,302.81 (Two Billion, Six Hundred and Seventy-Nine Million, Six Hundred and Forty-One Thousand, Three Hundred and Two Naira eighty One Kobo) to enable her to liquidate its outstanding indebtedness to Intercontinental Bank Plc.
The bank approved the facilities to the company through an offer letter containing terms and conditions. The offer letter dated 22nd June 2009 containing terms and conditions were duly accepted by the company.
However, despite the concession contained in the offer letters of restructuring the outstanding facilities, the Defendants failed to repay the overdraft facilities or service same in accordance with the terms of the grant thereby making it non performing and eligible for acquisition by AMCON in line with the AMCON’s statutory mandate.
Intercontinental Bank Plc by a loan Purchase Agreement, assigned all her Eligible Bank Assets (EBAs) including the loan assets of the company herein to the AMCON pursuant to the provisions of the Asset Management Corporation of Nigeria Act 2010 (As amended).
At the time of the purchase of the loan asset of the company arising from the un-serviced loan facilities, the indebtedness of the Stanzus Investment company stood at the sum of N2,507,097,294.17 (Two Billion, Five Hundred and Seven Million, Ninety-Seven Thousand, Two Hundred and Ninety-Four Naira, Seventeen Kobo)
AMCON wrote a demand letter dated January 22, 2013, to the Company demanding the outstanding indebtedness of the company.
AMCON charges an interest of 15% per annum on eligible bank assets/debts taken over by her and the total outstanding debit balance on the account of the company with the AMCON inclusive of the amount taken over and accrued interests as at May 8th 2023 amounts to the debit sum of
N6,516,183,686.23(Six Billion, Five Hundred and Sixteen Million,One Hundred and Eighty Three Thousand, Six Hundred and Eighty Six Naira, Twenty Three Kobo Only).
AMCON through its Solicitors Messrs. Benson Reeds Legal Practitioners Wrote demand letters to the Defendants demanding that the outstanding Balance of the debt be paid.
The Defendants have to date failed, refused, and neglected to honor their obligations and liquidate the outstanding debt or provide an acceptable repayment plan despite calls and demands by officers of AMCON.
AMCON believes that there are sum standing to the credit, benefit, beneficial interest and/or under the operating control of the Respondents and in Particular Mr.Stanley Ezenwa via his Bank Verification Number (BVN) Chinwe Hilda Ezenwa Mbah via her BVN and Christopher Adebayo Alabi via his BVN in the Under listed Bank and/or other Banks in Nigeria.
AMCON’s finding disclosed that there are shares, including dividend warrants in the possession and control of Securities Clearing system (CSCS) belonging to the Defendants in the following companies to wit:one hundred and four companies,Caronc Holding limited-four companies,Ezenwa Stanley Chuks-Eight companies,
The indebtedness of the defendants has since remained unpaid and same continues to accrue interest charges to the detriment of the interest of the public tax payers whose funds were utilized for the acquisition of the non-performing loan assets of the Defendants.
The Defendants also maintain shares in other companies and have funds in several bank accounts with several banks in Nigeria through personal and other corporate vehicles which funds, shares, warrant dividends are necessary for the satisfaction of the debts or judgment that may be given in respect thereof and are poised and ready to dissipate those funds and render such judgment Nugatory except an order of court is given attaching same pending the determination of the suit and those funds will serve to either fully or partially liquidate the debt and/or judgment sum this Court may award in the instant suit.
AMCON has no other option than to approach this Honourable court for recovery of the outstanding loan sums, following the failure of the Defendants to honour their debt obligations to the AMCON.
AMCON claims as per the writ of summons and as follows:
The Sum of N6,516,183,686.23(Six Billion, Five Hundred and Sixteen Million, One Hundred and Eighty-Three Thousand, Six Hundred and Eighty-Six Naira, Twenty-Three Kobo Only) being the outstanding Loan obligation owed AMCON by the Defendants as of 8th day of May 2023 on account of the Loan facilities granted the Defendant by Intercontinental Bank Plc and which loan asset was purchased by the AMCON.
Interest on the above outstanding Loan sum calculated at the rate of 15% per annum from the 8th day of May 2023 till date of Judgment and thereafter at the rate of 10% from the date of Judgment till final liquidation.
An order of the court directing the payment over and application of all and/or any sums standing to the credit of the Defendants in any Bank in Nigeria up to the amount of the Judgment sum of this court in this suit, towards the liquidation of the outstanding indebtedness of the Defendants to AMCON and by virtue of the Judgment of this court.
An order of the court directing and mandating the Securities and exchange Commission, Nigerian Exchange Group Plc, and Central Securities Clearing System (CSCS) to transfer shares, including dividend warrants in their possession belonging to the Defendants up to the amount of the judgment sum of this court in this suit towards the liquidation of the outstanding indebtedness of the Defendants to AMCON as determined by the judgment of this court.