N768m: UBA takes over Borini Prono Ltd

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A Federal High Court sitting in Lagos south west Nigeria has granted leave to a receiver/manager, Mr Olamide Owolegbon appointed by United Bank for Africa Plc to take over all fixed and floating assets of a limited liability company Borini Prono.

The receiver/manager will also take properties wherever found and whatsoever jurisdiction of the court and in Nigeria, particularly but not limited to all the assets of the company within its registered office, 11 Burma Road, Apapa, Lagos.

The appointment of Mr Owolegbon as the receiver/manager of the company was as a result of the company’s inability to pay a debt of N768,640,124.10.

In an affidavit sworn to by the bank’s head of loan recovery Mr Adeyemi Wey, filed and argued before the court by a Lagos lawyer, Barrister Temilolu Adamolekun, UBA granted several loan facilities to Borini Prono Company to augment its working capital.

Deal of the day

As security for the various loan facilities, the company executed the following documents
1. A duly registered deed of all Assets dated 6th of May, 2014.
2. Domicilliation letters in respect of contract payments,some of which the bank issued Advance payment Guarantee for.

However the company has failed to perform its obligations to the bank and has failed to liquidate the facilities which has continued to accrue interest and as at 31st May, 2019 the company’s indebtedness to the bank stood at N768,640,124.10.

Consequently, pursuant to clause 9 of the Deed of all assets the bank appointed Mr Olamide Owolegbon as Receiver /Manager over all assets of the company charged in favour of the bank.

The company and its Directors will likely obstruct, hinder and interfere with the powers vested in the Receiver/Manager as contained in the Deed of all Assets Debenture,therefore unless the company and its Directors are restrained,they would strip the company’s charged assets and dispose same; thus leaving the bank without any means to recouping or realising the indebtedness of the company.

Consequently, Mr Adamolekun, urged the court to issue order granting leave to the Receiver/manager to take over the assets of the company,and an order directing the Assistant Inspector General of Police, Zone 2,Lagos State, the commissioner Police Lagos, to assigning seven Policemen to protect Mr Owolegbon and his labourers to assist the baiIifs of the court in the course of the receiver taking possession and carrying out his duties as receiver of the property of the company.

The presiding judge, Chukwujekwu Aneke after hearing the submission of Mr Adamolekun, acceded to his request.