Dr. Wale Babalakin
Yemi Adebowale and Obinna Chima
Yemi Adebowale and Obinna Chima
It was a sad day for the Chairman of Bi-Courtney Group of companies, Dr. Wale Babalakin, SAN as the Asset Management Corporation of Nigeria (AMCON) yesterday moved to take over his companies as ordered by a Federal High Court in Lagos, over a N50 billion debt.
In a swift reaction, Bi-Courtney Group said it had obtained a restraining order and warned AMCON against any takeover attempt. It also denied being indebted to AMCON and described the judgement as “fraudulent.”
The court had on Monday ordered Bi-Courtney Group of companies to hand-over its concessionary powers at the Murtala Mohammed Airport domestic terminal, known as MMA2 to AMCON with immediate effect.
The court further appointed former president of the Nigerian Bar Association (NBA), Dr. Olisa Agbakoba, a Senior Advocate of Nigeria as receiver manager, to commence a recovery process with a view to recovering the companies’ assets and enforcing the liability of individual shareholders and directors.
A document signed yesterday by Agbakoba on his appointment as Receiver Manager stated: “I, Dr. Olisa Agbakoba, hereby notify the public that I have, pursuant to an order of the Federal High Court made on the 22nd day of September 2014, in the above mentioned suit, been appointed receiver over the assets of Bi-Courtney Limited, Chartered Investment Limited, Resort International Limited, Roygate Properties Limited and Dr. Bolanle Olawale Babalakin, to realise their assets, enforce the individual liability of the shareholders and directors and to manage the affairs of the above mentioned companies for the purpose of recovering debts owed to the Asset Management Corporation of Nigeria.
“The public is hereby notified not to carry on business with any of these companies without my authority and reference. The public is notified that any person(s) that carries on business with any of the companies without my authority will be liable to contempt of the orders of Court.”
The document also advised banks “not to deal with any of the officers of the above stated companies in relation to operating the companies’ bank accounts in whatever form or description without my authority or reference.
The document also advised banks “not to deal with any of the officers of the above stated companies in relation to operating the companies’ bank accounts in whatever form or description without my authority or reference.
“The Federal High Court also made an order restraining the banks from allowing these companies operate bank accounts held with your banks in whatever form or description pending determination of the substantive action.
“The Federal High Court has ordered that the banks shall file and serve on Olisa Agbakoba and Associates, within 7 days, an affidavit disclosing the balance on all accounts held with your banks jointly and severally as at date.”
He warned that any bank that acts contrary to the orders of the court would be liable to contempt.
The Federal High Court had on Monday ordered that Bi-Courtney’s account in banks be frozen with immediate effect just as it ordered the banks to disclose all its account balances to AMCON.
The Federal High Court had on Monday ordered that Bi-Courtney’s account in banks be frozen with immediate effect just as it ordered the banks to disclose all its account balances to AMCON.
The court document obtained by THISDAY last night also showed that AMCON was ordered to take over Babalakin’s three other companies. The companies are the Chartered Investment Limited, Resort International Limited and Roygate properties. They are now to be controlled by AMCON.
It also ordered AMCON to take over the old Federal Secretariat building Ikoyi, Lagos, belonging to Roygate Properties pursuant to a concessionary agreement between Roygate and the Federal Government.
Justice E. Abang also granted “an order granting possession, management and control of the respondent’s properties listed below to the applicant for preservation pending the determination of the substantive suit.”
Meanwhile, a separate court document with suit No: FHC/L/CS/1305.2011, also made available to THISDAY last night, dated September 25, 2014, showed that Bi-Courtney Limited was granted “an Order of Interim Injunction restraining the defendants (AMCON, the Attorney General of the Federation and Federal Airports Authority of Nigeria), either by themselves or through their agents, officers, receivers, solicitors or otherwise howsoever, from commencing, taking and/or continuing and steps or actions to appoint a receiver over, or in any manner howsoever take-over or interfere with the management, operation and/or control of the affairs of Applicants and/or the Murtala Muhammed International Airport Domestic Terminal II (MMA2) pending the hearing and determination of motion on notice for interlocutory injunction filed along with this application,” by Justice I.N Buba
A statement yesterday night by the management of Bi-Courtney described the judgement as “a kangaroo court judgement which AMCON claimed it obtained to take over the assets and finances of BCL.”
It continued: “BCL however on Thursday 25th September 2014 at the Federal High Court, actually obtained an Interim injunction restraining AMCON from taking over the assets, finances and accounts of BCL for debts owed to AMCON
The restraining order was given by Justice I. N. Buba, the Presiding Judge of the Federal High Court, following a motion filed by BCL.
“BCL is categorically stating: 1) It is not indebted to AMCOM or any of its agents, officers, privies, proxies, assignees, receivers, solicitors or any affiliates of AMCOM, 2) BCL had on 2nd November 2011 earlier obtained an order of Injunction restraining AMCOM from tampering with the management assets and finances of BCL. This order is yet to be set aside and subsists till date 3) BCL is not indebted to AMCOM but rather AMCOM as an agent of the Federal Government is indebted to BCL to the tune of N132b 4) BCL is a net creditor of AMCOM (5 AMCON has been advised to net off whatever they claimed BCL is owing them from the N132b"
“As a law-abiding and credible organisation, we wish to urge AMCON to stop brandishing a court judgement that is automatically and lawfully set aside as an earlier interim injunction given on 2nd November 2011 by the presiding Judge, Justice A.M Liman of the Federal a high Court was never set aside or vacated. The injunction obtained again on 25th November 2014 further reaffirm that BCL remains a credible and ongoing entity with.”
THISDAY had last month reported that only about 15 of the 113 bad debtors (companies) that the Central Bank of Nigeria (CBN) barred from further borrowings from banks two years ago had been able to repay their loans taken over by AMCON.
The low recovery rate by AMCON, translated to 87 per cent of loan defaulters, two years on, who have not been able to meet their loan obligations, according to THISDAY investigation.
Their inability to pay their loans, THISDAY had gathered, stemmed from the CBN directive, which has hampered their capacity to refinance and restructure loans, thus worsening their situation
Their inability to pay their loans, THISDAY had gathered, stemmed from the CBN directive, which has hampered their capacity to refinance and restructure loans, thus worsening their situation
SOURCE: THISDAY
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