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Why AMCON drag Olofa to court

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Asset Management Corporation of Nigeria (AMCON ) has dragged the Olofa of Ofa Kingdom in Kwara state, Oba Mufutau Gbadamosi, before a Federal High Court, Ikoyi, Lagos over non payment of N11.2 billion debt. Also sued apart from the monarch are two of his companies: Zarm Poultry and Feeds Mills Limited and Zarm Stores Limited. AMCON is asking the court for an order declaring that Zarm Poultry and feeds Mills Limited is indebted to it in the sum of N3,027,486,610.59 with interest thereon at the rate of 21%Per annum from April 9, 2017 until judgement and thereafter at the rate of 10% until total liquidation. Besides, the claimant sought the court for an order declaring that Zarm Stores Limited is indebted to it in the sum of N8,253,512,349.19 with interest thereon at the rate of 21% per annum from May 1, 2017 until judgement and thereafter at the rate of 10%until total liquidation. An order foreclosing mortgages on Plot 407 and 408, Odonla industrial Estate, opposite LSDPC Housing estate Odonla, Ikorodu, Lagos mortgage by the Zarm Poultry and Feeds Mills Limited and Oba Mufutau Gbadamosi to the former Oceanic bank as collateral for the grant of the facilities to Zarm Poultry and Feeds Mills Limited and empowering AMCON to exercise its power of sale as an unpaid mortgagee. An order foreclosing the mortgage over the piece of land measuring approximately 818.058 square meters being Block 1b, Osborne Phase 1,Lagos mortgaged by Zarm Stores Limited to the former Oceanic bank as collateral for granting of the facilities to the company and empowering AMCON to exercise its power of sale as an unpaid mortgagee. An order attaching the amount standing to the credits of the defendants in all financial institutions in Nigeria in satisfaction of the two companies debt. In a statement of claim filed before the court by a Lagos lawyer Osayaba Omorodion Giwa Osagie, it was alleged that pursuant to its enabling act AMCON sometime in 2012 purchased certain Eligible Bank Assets of the former Oceanic bank in the sum of N1,859,654,737.00 and N4,586,369,001.47 respectively. As at April 8, 2017 Zarm Poultry and Feeds Mills was indebted to AMCON to the tune of N3,027,486,610.59 being the unpaid principal and interest on a term loan facility of N2.3Billion that was given to the company sometime in 2006 by the former Oceanic Bank to finance Capital expenditure on its farm at Odonla, Ikorodu, Lagos. The term loan was secured by the execution of a deed debenture over fixed and floating assets of the company which included the execution of a deed legal mortgage over Plots 407 and 408,Odonla industrial Estate, Opposite LSDPC Housing Estate Odonla, Ikorodu Lagos. Read more at: https://dailytimes.ng/category/news As at April 8, 2017 Zarm Store Limited was also alleged to be indebted to AMCON to the tune of N8,253,512,349.19 being the unpaid principal and interests on a restructured term loan facility of N3,055,764,554.71 granted to Zarm Stores Limited sometime in 2009, the loan was subsequently further restructured to N4,462,589,667.33 to accommodate the debts arising from unpaid facilities granted Zarm Stores Limited’s other affiliates beside the one of Zarm Poultry and Feeds Mills Limited. The further restructured term loan was secured by a legal mortgage over a piece of land measuring 818.058 square meters being Block 1B Osborne Phase 1,Lagos and the personal guaranteed of Oba Mufutau Gbadamosi who is the Chief Executive Officer and also the majority subscriber to the shares of the two companies. It was further alleged that the defendants have not made any payments since the debts were assigned to AMCON inspite of several discussions and negotiations between the parties. The period stipulated for repayment of the banking facilities have since elapsed but the debts remain due and owing by the defendants to the Claimant as interest continues to accrue. In consequence thereof, the Claimant has commenced this legal action for recovery of the outstanding debt from the defendants,as they have no defence to the Claimant’s claims.

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