N727m Debt: Court Orders AMCON To Take Over Babatunde Folawiyo’s Assets

An order has been granted Assets Management Corporation of Nigeria (AMCON) by a Federal high court sitting in Lagos on Thursday to take over the assets of a Lagos businessman, Tijani Babatunde Folawiyo.

The asset seizure was ordered based on Falawiyo’s unpaid debt of N727.9 million.

The order of the court was sequel to an application filed before the court by the law firm of Seun Omotoba.

The written address was moved by Amobi Agu, who urged the court to allow the interim forfeiture of Folawiyo’s assets, pending final determination of the suit.

Agu also asked for an order to compel Folawiyo, his agents, servants and creditors to deliver to AMCON the possession of all his assets, bank accounts or any other asset wherever located in satisfaction of the Judgment of Justice Ibrahim Buba made 30 October, 2017, with accruing interest.

Other reliefs sought are:

An order compelling the Director General of the Securities and Exchange Commission of Nigeria (SEC) other subordinates jointly and severally attached to him, and under his authority, control and/or supervision to assist the Applicant in securing and/or preserving the shares listed in the name of the Respondent on the floor of the Nigerian Stock Exchange.

An order freezing the Bank accounts of the Respondent maintained with the following banks: Access Bank Plc, Citibank of Nigeria Limited; Diamond Bank Nigeria Plc; Ecobank Nigeria Limited; Enterprise Bank Limited; Fidelity Bank Plc; First Bank of Nigeria Limited, First City Monument Bank Plc, Guaranty Trust Bank Plc, Keystone Bank Limited, Skye Bank Plc, Stanbic IBTC Bank Plc, Standard Chartered Bank Nigeria Plc, Sterling Bank Plc, Union Bank of Nigeria Plc, United Bank for Africa Plc, Wema Bank Plc and Zenith Bank Plc .

An order granting leave to the Applicant to take interim possession of the property of the Respondent at Block 138, plot 13, Tunde Joda Drive, Lekki Phase 1, Lagos State, all of which belongs to the Respondent/debtor pending final determination of this suit.

Justice Lewis Allagoa after listening to the submission granted the orders as prayed.

He thereafter adjourned the case till 16 May 2022.

In an affidavit in support of motion papers, it was alleged that Spring Bank offered Companies de Logistic Nigeria Limited, a credit facility of N250 million for the purpose of Duty payment/clearing cost for blue-chip companies; Door-to-door logistics; and finance of confirmed/unconfirmed letters of credit for blue-chip companies based on irrevocable Local purchase orders LPO.

Mr. Tijani Babatunde Folawiyo is a director of Compagnie de Logistic (NIG) limited who was appointed by a valid resolution of the board of directors on 11t September, 2000.

The credit facility was granted to the Companies de Logistic Nigeria Limited Company by Spring Bank based on the personal guarantee and representation of one of the Directors that cheques would be issued from time to time to fully liquidate the facility through proceeds from LPO domiciled with the Bank.

AMCON acquired the Company’s loan from Spring/Enterprise Bank and the outstanding balance as at January1,2011 was N292,304,900.00 and the amount has grown to N533,396,381.11

The Companies de Logistic company received the full complement of the sum of N250 million as approved facility.

The loan agreements between the bank and the company had since expired and sums therein are due for repayment.

AMCON demanded the repayment.

By a Writ of Summons dated 14th day of February, 2017 in suit number FHC/L/CS/207/17, AMCON commenced an action against Compagnie Generale De Logistique (NIG) Limited and the defendants, claiming =N=522,464,978.66.

This was the total outstanding debt due and payable to AMCON on a loan advanced to the Respondent’s company at 23% interest per annum from the date of filing the suit till judgment and thereafter at the rate of 10% per annum until final liquidation.

AMCON also filed a Motion on Notice dated the 16th August,2017 praying the Court to enter final Judgment in default of appearance as per its reliefs in the Statement of Claim.

On the 30th October, 2017 the Court granted the said reliefs sought by AMCON in the said Motion on Notice and entered Judgment in favour of AMCON against the respondents in the sum of N522,464,978.66 at 23% interest per annum from the date the case was filed and till when Judgement will be delivered and thereafter at the rate of 10% per annum until final liquidation of the debt.

The Judgment Sum due from Tijani Babatunde Folawiyo to AMCON as at
February, 2020 was N=727, 967,870.03, being the outstanding judgment sum delivered by the Court on the 30th October, 2017 when the interest element is applied on the judgment sum.

The said Judgment is still wholly unsatisfied as at the time of filing this suit to the amount stated above.

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