N8.7bn Debt: Court restrains Vigeo boss from operating 17 bank accounts

Victor Gbolade Osibodu is the chairman and CEO of Vigeo Limited
Photo: HBS

A Federal high court sitting in Lagos, Southwest Nigeria has restrained a Lagos businessman, Mr Victor Gbolade Osibodu and his company Vigeo Limited and their agents from dealing with monies under their control in 17 commercial banks in Nigeria pending the determination of a claim of N8,701,770,328.83 suit filed against them by ECOBANK.

The court also ordered the affected banks to freeze and not to carry out any transactions on the accounts of the defendants and they should depose to an affidavit disclosing the nature, value, and balances in their custody.

The court also restrained Osibodu and his agents from dealing in or dissipating all his movable assets including but not limited to the following:

1. Shareholding of 80% in the property at 6 Osborne Road Ikoyi Lagos
2. Shareholding in the sum of N2,578,242,789.05 with Stanbic IBTC Bank, MTN and ETI
3. Shareholdings in the following companies where Victor Osibodu has shares:
a. Benin Electricity Distribution company
b. Art Trade limited
c. Pacific Creations Limited
d. Goldrunner Limited
e. Standard Communications limited.
f. I.C.E.L. Resources Investment Limited.
g. Corporate Precision Limited.
h. Grandview Limited.
i. Vigeo International Insulation Company Ltd.
k. International Insulation Company Ltd.
l. Global Utilities management Ltd.
m. Golden Heights Limited.

According to an affidavit sworn to by Adeniran Ojora, a banker at Ecobank Nigeria Limited and filed before the court by Simmons Cooper Partners, it was alleged that Ecobank granted several loan facilities to the defendants as follows:

By a duly executed offer of Multiple Credit facility dated 10 April 2007 “Dollar Facility 1&2 the bank approved the grant of the sums of $15 million and $1,750.000.

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By another duly executed offer of Multiple Credit Facility dated 10 April 2007 “Naira facility 1,2&3 the bank approved the grant of the sums of N200million, N750million and N350million respectively in favour of Victor Osibodu.

He executed a personal guarantee and a duly notarized statement of net worth dated 16 August 2007.

The statement of net worth had particulars of his personal assets worth N2,002,400,000 billion for the security of the loan in the event that he defaults in the repayment of the loan.

By a term loan facility dated August 1, 2008 and duly executed by the bank and Vigeo Limited on 8 August 2008, the bank approved US$2million.

It was agreed that the bank would make an equity contribution of 80 per cent in the sum of US$1,600,000 and Victor Osibodu would make a contribution of 20 per cent in the sum of $400,000 towards financing of the dry docking exercise.

In addition to the legal mortgage with the company and the personal guarantee of Victor Osibodu backed up by notarized statement of net worth.

In 2009 the bank approved $1million in favour of Vigeo Company via a promissory note dated 30 June 2007 and duly executed by its Director and Secretary.

The company agreed to pay the sum of $1million only on 30 June 2013 being due date fixed by the promissory note.

In a letter dated 27 June 2014 the bank informed Vigeo company that its account had remained non-performing as the company had failed to make the agreed loan repayments.

The bank also provided Victor Osibodu’s outstanding loan obligations which stood at N719,332,948.38 due for 365 days and $13,074,478.40 due for 365 days and $4,114.28 due 390 days.

As a consequence of Victor Osibodu’s failure to repay the outstanding sums as at 1 August 2016 the bank formally called in his personal guarantee by demanding the immediate payment of N869,794,650.56 and $16,381,292.52 on or before September 2016.

As at 6 December 2016, the Vigeo Company total outstanding indebtedness stood at N8,123,327,459.83.

However, upon payment of the amount realised from the sale of the share of Victor Osibodu the company’s outstanding indebtedness reduced to N7,526,112,446.84.

Victor Osibodu as the Chairman of Vigeo Company was alleged to have specifically involved in negotiating the loan facilities from 2007 to 2014 while Vigeo company was typically involved in the approval process of the loan facilities from 2007 to 2014.

Ojora stated further that Victor Osibodu has begun to dispose of his shares in blue chip companies having been made aware of the bank’s intention to dispose his shares which were used as part security for the loan granted the Vigeo company.

Vigeo company is under his control with stake in different subsidiaries and is capable of removing its assets including money and shareholdings from jurisdiction of this country to its company in the United Kingdom (Vigeo International Limited or rendering same untraceable if urgent steps are not taken to protect the bank’s interest.

Osibodu was also alleged to currently operating and runs over 250 accounts in 14 commercial banks in Nigeria for himself and on behalf of Vigeo under several names and business combinations and has been using these accounts to set off payments in his other businesses thus making it difficult for the bank to collect payments from him.

Therefore the deponent averred that the bank undertakes to give comprehensive indemnity to the defendants, should it turn out that the bank’s claim is frivolous and unmeritorious.

In his ruling, Justice Saliu Saidu, restrained Vigeo company and its Chairman Victor Osibodu from removing or transferring, dealing in or however dissipating all their movable assets up to the Plaintiff ‘s claim of the sum of N8,701,770,328.83.pending the hearing and determination of the substantive suit.

The defendants were also barred from operating their accounts domicile in 17 commercial banks in Nigeria pending the determination of the substantive suit.

The case has been adjourned till next week for mention.