United Bank For Africa Sues Energy Firm, Polaris Bank Over N2.8 Billion

A Federal High Court sitting in Lagos has restrained Integrated Energy Distribution and Marketing Company Ltd and Polaris Bank from tampering, howsoever, with funds standing to their credit score as much as $6,759,000 (about N2.8 billion) or its equal in any forex in 25 banks, the Debt Management Office and Federal Ministry of Finance.

Justice Daniel Osiaigor, who made the interim order of Mareva Injunction, held that it subsists pending the listening to and willpower of a movement on discover filed towards the duo by the United Bank for Africa (UBA).

The July 2 order adopted UBA’s June 29 Application filed and argued by its counsel, Temilolu Adamolekun, who appeared with Gbenga Akinde-Peters, supported by an affidavit sworn to by Anike Isinguzo and Exhibits hooked up. 

United Bank For Africa Sues Energy Firm, Polaris Bank Over N2.8 Billion 2

Integrated Energy Distribution and Marketing Company Ltd and Polaris Bank are the first and 2nd respondents within the go well with quantity FHC/L/CS/714/21.

The third to twenty sixth respondents are Access Bank plc), (Citibank Nigeria Ltd), (Diamond Bank Plc), (Ecobank Nigeria ltd), (Enterprise Bank Ltd.), (Fidelity Bank Plc.),( First Bank of Nigeria Plc.), (First City Monument Bank Plc), (Globus Bank Limited), (Guaranty Trust Bank Plc), (Heritage Bank Plc.), (Jaiz Bank Limited), (Keystone Bank Limited), (Polaris Bank Limited), (Providus Bank Limited), (Stanbic IBTC Bank Nigeria Ltd.), (Standard Chartered Bank Ltd.) (Sterling Bank Plc.), (SolarTrust Bank Nigeria Limited). (Titan Trust Bank Limited), (Union Bank Plc), (Unity Bank Plc.). (Wema Bank Plc.) and (Zenith Bank Plc).

The twenty eighth and twenty ninth respondents are the DMO and Finance Ministry. 

The court docket additional restrained the third to twenty sixth Respondents or their brokers from releasing the sum to the Defendants.

The order additionally restrained the first Defendant from coping with any of the monies standing to its credit score in all of its accounts, or any cash wherein it has any curiosity held on its behalf with the twenty seventh to twenty ninth Respondents as much as $6,759,000 or its equal.

The court docket restrained the 2nd Defendant from coping with any of the monies, devices, Sovereign Debt Notes, Promissory Notes, Treasury Bills or some other instrument wherein it has an curiosity or standing with the twenty seventh, twenty eighth and twenty ninth Respondents, to the tune of $6,759,000 or its equal.

It forbade the twenty seventh, twenty eighth and twenty ninth Respondents (CBN, Debt Management Office and the Federal Ministry of Finance) from releasing any monies or funds belonging to the 2nd Defendant or whereby the 2nd Defendant has an curiosity up the $6,759,000 or its equal.

The choose additional directed the third to twenty ninth Respondents to reveal on oath the entire sum of cash or funds of their custody belonging to any of the Defendants.

The plaintiff had averred in its affidavit that the vitality agency received the bid to accumulate 60 per cent stake/of the shares within the Ibadan and Yola Electricity Distribution Companies following the privatisation train of the Power Holding Company of Nigeria (PHCN) Assets someday in 2013.

It utilized to and acquired a $162,400,000 syndicated mortgage from the plaintiff, the 2nd Defendant (previously Skye Bank Plc), Diamond Bank Plc now Access Bank Plc, First City Monument Bank Ltd, Heritage Bank Plc and Keystone Bank Ltd (collectively known as the lenders).

The lenders additionally agreed to the appointment of the 2nd Defendant because the Facility Agent in respect of the ability to, amongst others, guaranteeing the reimbursement of the mortgage. 

The plaintiff accordingly disbursed the sum of $35 million to the first Defendant to allow it meet the aim(s) for which it wanted the pooled funds.

The vitality agency was unable to conclude the transaction on Yola Electricity Distribution Company (Yola Disco), owing to the insurgency in North-East and it invoked the pressure majeure safety clause enshrined within the agreements and demanded a refund of the invested sum from the Federal Government.

Sometime in March, 2020, the Federal Government paid the ultimate installments of the refund (recovered sum) to the vitality agency and Polaris Bank. 

“However, the remaining tranche of the Plaintiff’s share of the said recovered sum has since been withheld by the Defendants, particularly the 2nd Defendant,” UBA instructed the choose.

The court docket adjourned until July 13, for listening to of the movement on discover.

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United Bank For Africa Sues Energy Firm, Polaris Bank Over N2.8 Billion

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