Stallion Nigeria Reacts After UBA Took Over its Assets Over Alleged N156bn Debt
- Stallion Nigeria Limited has denied that it owed UBA the sum of N156 billion
- According to the company, only one subsidiary of the group had a contract with UBA
- It stated that the company and its co-defendant companies are opposing the action
Stallion Nigeria Limited said it is not true that it owes the United Bank for Africa (UBA) the sum of N156 billion as claimed by the bank.
It said this in a statement on Monday, December 11, 2023.
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This followed an earlier report by Legit.ng that UBA had taken over the assets of Stallion Nigeria Limited and its affiliates in Lagos, Port Harcourt, and Kano.
The move came after a federal high court in Lagos alleged N156 billion debt suit against the company.
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Only Stallion Nigeria Limited had a contract with UBA
According to the conglomerate's statement, only Stallion Nigeria Limited within the entire Stallion Group had a financing contract with the UBA.
It added that the company in 2014 made the repayment of N17 billion in import finance to the bank.
TheCable reported that Stallion Nigeria Limited and its affected sister co-defendant companies are opposing the action of UBA in the federal high court.
It stated:
“Most of the companies within the Stallion Group are not in any way affected by the action filed by UBA and neither their assets not their operations are affected by the lawsuit of UBA.
“As a matter of Nigerian law, a court of law does not assume jurisdiction over any party that is not expressly named as a defendant in an action before it.
“Stallion Nigeria Limited has excercised its right of appeal against the decision of the Federal High Court refusing to set aside the ex-parte orders granted in favour of UBA Plc.”
Stallion claims allegation is unfounded
According to the group, the court did not consider several facts misrepresented and materials concealed by the bank in its exparte application to the court for the interim order.
Stallion maintained that upon a proper reconciliation of accounts, the allegation of indebtedness by UBA was unfounded.
It claimed it had made several deposits on account throughout its relationship with the bank.
It noted that the payments were made even though it was yet to receive proceeds of the part-financed contract supply to the federal government.
The company said it had a firm commitment from the management of UBA to reconcile the account and was already in discussion, but the bank "proceeded to court in bad faith."
Stallion also denied that it dissipated its assets, noting that they are not movable.
It noted that its combined value with receivable is greater than the alleged indebtedness, but the court inexplicably downplayed it.
The group said they are already documenting their losses arising from UBA's invasion of their business premises and would pursue the appeal against the ruling court.
In a related development, UBA in Kenya was granted permission to auction a piece of land belonging to Uchuni Supermarkets on Langata Road, Kenya, over N871.5 million (Ksh 162 million) debt.
A High Court gave the bank permission to sell the land after it emerged that the defunct supermarket and management had yet to pay the debt, three years after reaching a deal on the Company Voluntary Agreement (CVA).
UBA to distribute $6bn loan to mechanics, farmers, Others
Legit.ng also reported that the United Bank for Africa Plc revealed plans to assist Small and Medium-scale Enterprises in four sectors with the $6 billion facility from the Africa Continental Free Trade Area Secretariat.
The sectors are agro-processing, automotive, pharmaceuticals, transport, and logistics.
Muyiwa Akinyemi, UBA's Deputy Managing Director, announced this on Wednesday, November 15, 2023, during the Africa Day celebration at the Lagos International Trade Fair.
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Source: Legit.ng
