$225M DEBT: FIRST BANK SPEAKS ON LEGAL TUSSLE WITH OBAIGBENA’S GHL
$225M DEBT: FIRST BANK SPEAKS ON LEGAL TUSSLE WITH OBAIGBENA’S GHL The management of First Bank of Nigeria Limited on Tuesday said media reports alleging that it abused court processes in the ongoing legal battles with General Hydrocarbons Limited are misleading and incorrect. The bank said it performed its obligations under the loan agreements but trouble started when it demanded for good governance and transparency in the transaction, which GHL rejected. “Consequently, it is incorrect to assert that FirstBank abused the process of the court,” the bank said in a statement. PREMIUM TIMES reported how the Federal High Court, Ikoyi, Lagos, granted an order restraining all commercial banks in Nigeria from releasing or dealing in all monies and assets up to $225.8 million due to Nduka Obaigbena from any account maintained by him. Nduka ObaigbenaNduka ObaigbenaMr Obaigbena is the chairman and editor-in-chief of THISDAY Media Group and Arise News Channel. The court also blocked all commercial banks from releasing or dealing in all monies and assets up to the said amount belonging to Efe Damilola Obaigbena, Olabisi Eka Obaigbena and General Hydrocarbons Limited, an oil and gas firm in which all the three are directors and shareholders. Another order barring the banks from dealing in or releasing such monies and assets due to the company, its agents, privies, subsidiaries and sister companies with the banks up to the same sum was issued, according to court documents obtained by PREMIUM TIMES. General Hydrocarbons, in its response, said it also obtained a court order securing its operations. “We are in court and arbitration to resolve our differences and have obtained a court order securing our operations pending determination,” the company said in a statement signed by its chairman, Nduka Obaigbena. Public Statement by First Bank of Nigeria Limited Our attention has been drawn to recent media reports regarding a commercial transaction between First Bank of Nigeria Limited (FirstBank) and General Hydrocarbons Limited (GHL) that is currently a subject of litigation. As a responsible and law-abiding corporate citizen of Nigeria with utmost respect for the courts,FirstBank will not be able to offer comments on issues which are pending for determination by the courts, as such issues are sub-judice. However, we are constrained to issue the following clarifications to correct the sponsored but false narratives on the matter presented in some of the media publications. There is a subsisting commercial transaction between FirstBank as lender, and GHL as borrower, where FirstBank extended several credit facilities to GHL for the development of some Oil Mining Lease assets. There is a subsisting commercial transaction between FirstBank as lender, and GHL as borrower, where FirstBank extended several credit facilities to GHL for the development of some Oil Mining Lease assets. These facilities are backed by very robust loan agreements executed by the parties in which the obligations of the parties are clearly defined and the security arrangement clearly spelt out. While FirstBank has diligently performed its obligations under the loan agreements, at the root of the present dispute is FirstBank’s demand for good governance and transparency in the transaction, which GHL rejected. Upon FirstBank’s realization of breaches on the part of GHL including diversion of proceeds, FirstBank requested that an independent operator mutually acceptable to both parties be appointed in line with the terms of the agreement, to operate the financed asset in a transparent manner that will bring greater visibility to the project, protect the interest of, and bring value to all stakeholders. Not only did GHL roundly reject this reasonable and fair request, rather GHL insisted that FirstBank avails it with more funding. GHL refused to execute the terms of offer stipulated by the Bank for the availment of additional funding but rather proceeded to commence needless Arbitral…
Dons Eze
