Keystone Wins Lawsuit against 9mobile as Telecom Is Set to Pay Billions of Naira after Court Order
- The owners of 9Mobile Network will reimburse N55,776,507,509 to Keystone Bank Limited based on a recent court order
- This is as Keystone Bank Limited's counsel filed a lawsuit on the company's behalf and accused Teleology Nigeria Limited, owner of 9mobile
- The bank called attention to Teleology's noncompliance with several specified loan facilities used to finance the company's purchase
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The proprietor of 9Mobile Network, Teleology Nigeria Limited, is required to pay Keystone Bank Limited fifty-five billion naira, seven hundred and seventy-six million, five hundred and seven thousand, five hundred and nine naira, and sixty kobo, as ordered by Justice Yellin Bogoro of a Federal High Court in Lagos.
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Teleology Nigeria Limited was accused in a lawsuit brought on behalf of Keystone Bank Limited by its attorney, Bode Olanipekun (SAN), of neglecting to repay a loan facility used to finance the company's purchase of strategic assets from Emerging Markets Telecommunication Services Ltd., dba 9Mobile Network.
In a New Telegraph report, Olanipekun drew attention to the fact that Teleology had not complied with a number of requirements outlined in the restructuring letter, including operation conditions, transaction dynamics, precedence, and other requirements, despite the bank's offer to restructure the credit facility.
According to Olanipekun,
“Rather than receive payment on the defendant’s debt liabilities, the plaintiff received a presentation from a company called PAC Limited proposing amongst others, a debt sale and/or acquisition by Bankruptcy Remote Special Purpose Vehicle in a proposed transaction structure akin to a conversion of the debt to equity without any immediate downpayment or repayment of the outstanding huge indebtedness of the defendant.”
Michael Kaase Aôndoakaa (SAN), the attorney for Teleology Nigeria Limited, pleaded with the court not to rule in favour of Keystone Bank, arguing that the Federal High Court lacked authority to hear cases involving banker-customer relationships.
In response, Olanipekun implored the court to disregard Aôndoakaa's arguments because no motion had been made to halt the court's order or to appeal it, postponing the case until after it was decided.
The defendant's application was seen by the court to be equivalent to an arrest of judgment, and the court determined that the above mentioned procedure was incompatible with the procedures that were underway.
Judge Bogoro ruled in favour of Keystone Bank, refusing the defendant any opportunity to refute the action and directing Teleology to pay the remaining debt from the defendant's loan facilities, which totals fifty-five billion naira, seven hundred and seventy-six million, five hundred and seven thousand, five hundred and nine naira, and sixty kobo.
Telecomm is set to increase call
Legit.ng reported that telecommunications providers are lobbying the federal government to grant the planned increase in telecom tariffs in the country.
Sources at the Nigerian Communications Commission (NCC) and Ministry of Communications and Digital Economy told Daily Trust that Nigerian subscribers will pay between 10% and 15% more than the current tariffs if the telcos' request is guaranteed.
Since November last year, the telecom operators have pleaded with the government to approve their request to review upward the current call and data tariffs.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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