Brunel Engineering, GTBank settle N1.2b debt out of court

Guaranty Trust Bank, GTB, has provided existing and prospective customers with financial goals for 2018 Brunel Engineering
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Brunel Engineering and Consulting Company Limited and Guaranty Trust Bank Plc have filed terms of settlement before a Federal high court in Abuja to amicably resolve the debt owed by the Engineering company.

The terms of the settlement which have been endorsed as the judgement of the court was as a result of a petition filed before the court by a Lagos lawyer Dr. Francis Chuka Agbu SAN, on behalf of Guaranty Trust Bank, it was alleged that the respondent, Brunel Engineering and Consulting Limited, was awarded a contract by the Central Bank of Nigeria (CBN) for the refurbishment of its branch building in Bauchi, Bauchi state at the cost of N3,746,940,369.90.

The bank extended several loan facilities in the form of advance payment guarantees APG to the company including a N750 million term loan.

When the tenor of the various facilities expired the company failed to liquidate the outstanding indebtedness and the failure of the company to liquidate the indebtedness has resulted in the continue accrual of interest on the outstanding sum.

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Consequently, the bank filed the instant petition seeking the winding up of the company by the court under the provision of Companies and Allied Matter Act of the Federation of Nigeria 2004.

In the course of proceedings the two parties sought the leave of the court which was granted to explore amicable settlement out of court.

In the terms of settlement filed before the court, the parties agreed as follows:
That the outstanding indebtedness of the company to the bank stands at the sum of N1,156,779,111.91 as at 23rd of December, 2016 with interest accruing thereon at the bank lending rate.

The company offered to pay the discounted sum of N406,753,642.67 in full and final settlement of the above stated indebtedness,an offer which the bank has duly accepted.

The company has now paid to the bank the sum of N406,753,642.67, and the bank has acknowledged the receipt of the said payment.

The two parties are to bear their respective cost including but not limited to fees paid to the solicitors in connection with this suit.

The Brunel Engineering and Consulting Limited is hereby discharged from further liability to the bank in respect of the debt the subject matter of this suit.

The terms of settlement executed by the two parties are hereby made the judgement of the court.

The presiding judge, Justice I.E. Ekwo, while endorsing the terms of settlement filed before the court as judgement of the court said, “All terms, provisions, conditions and covenants herein shall be binding and shall inure to the benefit of the respective successors and assigns of the parties in this suit.

The terms of settlement constitute the entire agreement between the petitioner and the respondent and it supersedes any prior oral or written agreement between them in respect of this subject matter and there are no representations understanding or agreements relating to the subject matter thereof that are not express herein.

The respondent is hereby discharged from further liability to the petitioner in respect of the subject matter of this suit. This is the judgement of this Court.