Receiving Order: Oba Otudeko Knows Fate December 11 | Independent Newspapers Limited
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Receiving Order: Oba Otudeko Knows Fate December 11

Posted: Dec 8, 2015 at 9:25 am   /   by   /   comments (0)


A Federal High Court sitting in Lagos on Monday 7 December adjourned till Friday, December, 11  2015 to decide whether to accede to the request of Ecobank Plc or not, that receiving order should be made against Dr. Obafoluke Ayoola Otudeko’s estate, funds investment, shares or his other interest for his alleged inability to pay a debt of N4,118,552,765.71 (about N4.1 billion).

Otudeko, foremost businessman is a Forbes-rated billionaire.

Lagos lawyer, Kunle Ogunba had on behalf of Ecobank plc filed a bankruptcy suit against Otudeko in the creditor’s petition number FHC/L/BK/19/2015.

In the petition, it was alleged that Oba Otudeko is unable to repay the facilities duly procured by his companies, Honeywell Flour Mills, Siloam Global Services Limited and Anchorage Leisure Services Limited, in line with terms and conditions of the said credit facilities and personal guarantee he duly executed.

As at 6 August, 2015, an outstanding sum of N4,118,552,765.71 was on the account of guaranteed indebtedness secured by the debtor which he has refused to pay in spite of numerous demands. The tenor/repayment plans of the facilities have all lapsed due to the unending default of the debtor.

It was further alleged that on the account of and following the failed public offer of shares of Honeywell Flour Mills, another huge credit facility was given to Siloam Global Services Limited, a sister company to Honeywell Flour Mills Plc to cover underwriting exposures which arose from the said failed public offer of shares.

The underwriter’s exposures booked on behalf of Honeywell Flour Mills Plc to Siloam Global Services Limited and guaranteed by Otudeko has also become payable in view of the unending default by him.

The obligation of Anchorage Leisures Limited was further secured by Otudeko by virtue of the continuing status of his personal guarantee as covenanted in his averment.

Ecobank plc, further alleged that Otudeko, serving as chairman of the borrowing companies and whose guarantee the various facilities were availed and restructured and at whose instance various meetings were held for amicable solution, refused to heed all the lawful demands of the bank.

Therefore, the bank is seeking from the court the following reliefs: A receiving order against the estate, funds, shares or other interest of the Debtor, principally Siloam Global Services Ltd, Honeywell Group Limited, Honeywell Flour Mills Plc, Anchorage Leisure Services Ltd, Honeywell Oil and Gas Ltd, Uraja Real Estate Limited, Broadview Engineering Ltd, and Uraja Power Solution Ltd.

Others are Honeywell Energy Resources Ltd. Hudson Power Ltd., Pivot Engineering Ltd. and Pavillion Technology Limited which interest is held either directly or through Siloam Global Services Limited or in any other company within and outside Nigeria.

An order instructing Oba Otudeko to immediately avail the bank his statement of net worth and other credible financial details requisite and in furtherance of the Bankruptcy Act.

Consequential orders as follows: Empowering the bank to sell his properties, be it landed or chattels, by private treaty or by public auction.

An order granting leave to the bank to appropriate or otherwise utilize the proceeds in partial or full satisfaction of the debt due.
An order declaring the Debtor bankrupt.

When the matter was mentioned Monday, the presiding Judge, Okon Abang said the matter was initially filed by ex-parte, that is the debtor was not put on notice. The court then ordered that the debtor should be put on notice.

Thereafter, the matter was adjourned on three different occasions to enable the debtor file his response, but the debtor did not file any response.
The reliefs sought by the creditor could have been granted on Monday but there is no proof of service in the court’s file or any evidence that the debtor has been served despite the fact that the creditor’s counsel told the court that Oba Otudeko had been served.

Consequently Justice Abang adjourned till Friday, 11 December, 2015 for the creditor to show proof of service.

Otudeko is currently rated 24th richest man in Africa by Forbes magazine with a networth of $550m. His conglomerate’s operations stretch across oil and gas, flour milling, real estate and marine transportation.

Another piece of his fortune is in the oceanfront Radisson Blu in Lagos, Nigeria.

Source: TheHeat Nigeria