First Bank Tells GHL Why It Cannot Unfreeze Accounts, Asks Other Banks to Maintain Status Quo

• FirstBank has explained why it cannot unfreeze General Hydrocarbon Limited (GHL) accounts in line with the court orders
• The bank in its statement says it is committed to recovering all monies from debtors that default on loan obligations
• FirstBank has also asked other banks to maintain status-quo on the matter, pending the outcome of the appeal

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

First Bank of Nigeria Plc has given reasons why it cannot unfreeze General Hydrocarbons Limited (GHL) accounts, in line with the Federal High Court Order.

On Wednesday, January 29, a Federal High Court ruled that the ex parte Mareva order placed on the assets of General Hydrocarbons Limited, its shareholders, and directors, should be lifted because it violated an existing order from a court of concurrent jurisdiction.

The Mareva injunction had earlier been secured in line with a disputed $225.8m loan debt involving General Hydrocarbons Limited, a Nigerian oil and gas services company (GHL). The Mareva order is supposed to freeze or protect assets belonging to defendants/respondents while legal proceedings are still ongoing.

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GHL later announced that other banks were already complying with the court order to unfreeze its assets.

FirstBank says it cannot unfreeze GHL accounts

In a statement from First Bank on Sunday, it disclosed that it had already appealed the Federal High Court judgment lifting the Mareva order, the PUNCH reports.

In response to earlier reports that other banks had already started complying with the ruling of Justice Deinde Dipeolu, First Bank issued a note of caution warning them not to engage in the premature move.

It said in its statement;

“Our attention has been drawn to recent media reports suggesting that some banks have begun complying with the ruling of Honourable Justice Deinde Dipeolu of the Federal High Court, Lagos, which lifted the Mareva order placed on the assets of General Hydrocarbons Limited, its directors, and shareholders. We would like to state that such action is premature, as the necessary steps for banks and stakeholders to comply with the court’s decision have not yet been completed.”

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FirstBank asks other banks to maintain status-quo

In line with the latest move to appeal the judgment, FirstBank has now asked the other banks to maintain the status quo pending the outcome of the appeal.

It stated that the bank will continue to pursue all legal routes to recover monies from debtors that default on their debt servicing obligations.

The bank also assured stakeholders that it will maintain transparency and diligence in addressing all similar ongoing matters.

Recall that the bank recently announced 113% growth in gross earnings to N3.3 trillion, and 142% growth in Profit Before Tax to N862 billion.

In a chat with Legit.ng, Ejovi Erebor (Esq.), a legal practitioner, explained that a Mareva injunction is to protect the affected assets until the case is determined by the law court.

Erebor declined to comment on the case which is still before the court, but she clarified that a Mareva injunction does not grant either party right over the assets.

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She explained;

"The idea is so that by the time judgment is gotten, the res is still preserved and not depleted or extinguished."

FirstBank responds to GHL's accusations

In related news, First Bank of Nigeria Limited recently reacted to General Hydrocarbons Limited's (GHL) allegation that it was exploiting the legal system in its favour.

In a statement, FirstBank claimed to be the sole party to submit a substantial claim against GHL to the Federal High Court in Lagos.

It made it clear that its allegations and the dispute GHL filed for arbitration and sought preservation orders over are not the same.

Source: Legit.ng