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Emzor Pharmaceutical In N6.2B Debt Mess As Bank Files Winding-up Petition Against Firm

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Emzor Pharmaceutical Industries is literally swimming in a pool of debt scandal as Nova Merchant Bank Limited filed a winding-up petition before a Federal High Court sitting in Lagos, against the firm.

 

The bank is seeking to recover a loan of N6,205, 575,569.93 (Six Billion, Two Hundred and Five Million, Five Hundred and Seventy Five Thousand, Five Hundred and Sixty Nine Naira, Ninety Three Kobo) granted the firm.

 

The suit marked: FHC/L/CP/1044/2024 has been assigned to justice Chukwujekwu Aneke.

 

Listed as respondents in the suit are; Central Securities Clearing System Plc, Access Bank Plc, Ecobank Nigeria Limited, Citi Bank Plc, Fidelity Bank Plc, First City Monument Bank Plc, First Bank of Nigeria Limited.

 

Others are, Guaranty Trust Bank Plc, Jaiz Bank Plc, Keystone Bank Ltd, Polaris Bank Plc, Providus Bank Plc Stanbic Ibtc Bank Plc, Sterling Bank Plc, Standard Chartered Bank Plc, Union Bank of Nigeria Plc, United Bank For Africa Plc, TAJ Bank Limited, WEMA Bank Plc, and Zenith Bank Plc.

 

In a Motion on Notice filed by counsel to the bank, Mr. Oluwakemi Balogun SAN, he stated that the petitioner has issued on the respondent, the statutory three weeks demand notice required by Section 572 of the Companies and Allied Matters Act (CAMA) 2020.

 

He stated that the three weeks demand notice had since elapsed, yet the respondent has neglected to pay or to secure or compound for same to the reasonable satisfaction of the Petitioner.

 

Balogun stated that the respondent is unable to liquidate its indebtedness, by virtue of Section 574(1) of the Companies and Allied Matters Act (CAMA), Section 6(6) of the Constitution of the Federal Republic of Nigeria, 1999 as amended, Rule 183 of the Companies Winding-Up Rules, 2001, and by JB Order 30 of the Federal High Court (Civil Procedure) Rules, 2019.

 

He stated that substantially the whole of the assets of the respondent are personal in nature and are liable to be dissipated, removed, destroyed, and or otherwise evaporated by the alter egos of the Respondent unless a restraining order is granted to prevent the res from being dissipated.

 

In an affidavit deposed in support of motion on notice deposed to by Azeezat Adeniji, a Principal Officer in the employment of Nova Merchant Bank, the deponent stated that upon an application by Emzor Pharmaceuticals Industries Limited, the Petitioner by an offer letter dated 55h April, 2022 with reference number NVB/22/CBG/APRIL/05/004, granted a 2 type credit facility to Emzor Pharmaceuticals Industries Limited.

 

The Facility Type 1 is in the sum of $4,583,333.00 (Four Million, Five Hundred and Ejighty-Three Thousand, Three Hundred and ThirtyThree United States Dollars Only) to finance importation of various raw materials while the Facility for the Facility Type 2 is in the sum of N500,000,000.00 (Five Hundred Million Naira Only) to augment working capital requirement of the company.

 

She stated that the securities for the Facilities are: (a) All Asset Debenture over fixed and floating Asset of the Respondent to be shared pari-pasu with other lenders. (Facility Type 1&2), and (b) Personal Guarantee of Stella Okoli (Facility Type 2 only).

 

The deponent added that by a Board Resolution passed on the 6th day of April, 2022, the respondent at its Board of Directors Meeting approved, authorized and appointed the Managing Director, Dr. Mrs. Stella Okoli and Executive Director, Mrs. Uzoma Ezeoke to execute the offer letter of the Petitioner dated 5th April, 2022 for the 2 type credit facility in the sum of $4,583,333.00, and N500,000,000.00 respectively.

 

The Mortgage Debenture Trust Deed entered into by parties and being managed by UTL Trust Management Services Limited and Coronation Trustees Limited was duly executed on the 1st of December, 2022. Annexed and marked as Exhibit NMB 3 is a copy of the Mortgage Debenture Trust Deed dated 11th of December, 2022.

 

Further to the above and as security for the facility, the Personal Guarantee of the Respondent’s Managing Director, Dr. Mrs. Stella Okoli was duly executed and notarized on the 13th of April, 2022.

 

By virtue of the clause titled “other conditions” in the offer letter of 5th April, 2022, the Respondent in paragraph 8 covenanted with the Petitioner that “all sums outstanding in Emzor Pharmaceutical Industries Limited accounts pursuant to the above shall become immediately payable upon the Bank’s first demand and interest shall accrue thereon at the Bank’s ruling rate for unauthorized facilities until the outstanding sums are fully liquidated”.

 

Also, by the 5th April, 2022 offer letter under the clause titled “legal and other expenses”, the Respondent covenanted to reimburse the Petitioner for all out of pocket expenses including solicitor fees that may arise in the enforcement of the terms of the offer letter. And such costs shall be added to the facility and all other monies owing under the terms of the offer letter and shall bear interest accordingly.

 

The deponent added ” I am aware that due to the recaicitrant attitude of the Respondent towards offsetting the debt, a need arose for the Petitioner to contract the services of a Solicitor in instituting this suit.

 

She stated that the Petitioner wrote a demand letter to the Respondent informing them of their obligations which have fully matured and yet to be serviced. Annexed and marked as Exhibit NMB 7 is a copy of the demand letter dated 15th February, 2024.

 

But, due to the Respondent’s continuous and unremitting default or inability to honour the covenants in the Offer Letter, the Petitioner caused a Statutory Demand Letter dated 20th of March, 2024 served on the Respondent.

 

Yet, the respondent failed, refused, and neglected to repay the loan advanced to them by the Petitioner despite several commitments.

 

Consequently, the Petitioner is seeking for an order of court appointing the Deputy Chief Registrar of the Federal High Court, Lagos, as Provisional Liquidator of the Respondent to take over and oversee the affairs and continuous running of the Respondent’s Company pending the granting of the Winding-up Order by this Honourable Court.

 

“An order of interlocutory injunction ‘restraining the respondents, their Directors, members of Staff, Management, employees, officers, agents, privies or any other person or group of persons whatsoever under the Respondent’s authority or any other authority (howsoever derived or sourced) from operating, withdrawing from and/or otherwise tampering with the Respondent’s funds under whatsoever name or guise in the cited Bank or financial institutions pending the grant of the Winding-up Order by this Honourable Court.

 

“An Order of Interlocutory injunction (restraining the Respondent, their agents, servants and/or privies from tampering with, alienating, transferring and/or otherwise’ dissipating or otherwise appropriating the Respondents’ fixed and movable assets howsoever described and called, pending the grant of the Winding-up Order by this Honourable Court.

 

“An order of court directing the cited Respondents listed as 1-20 on the face of this Motion Paper to hold and disclose by way of a sworn affidavit filed within five days upon being notified of the order of this honourable Court (and a copy served on the Petitioner’s Solicitors) particulars of all assets, monies, real estate, stock, funds, bonds, cash deposits, bank guarantees, letters of credit and all negotiable instruments in the name of the Respondents up to the sum of N6,205, 575,569.93 (Six Billion, Two Hundred and Five Million, Five Hundred and Seventy Five Thousand, Five Hundred and Sixty Nine Naira, Ninety Three Kobo) being the outstanding indebtedness of the Respondent to the Petitioner as at 5″ of June, 2024 pending the grant of the Winding-up Order by this Honourable Court.”

 

Justice

Aneke has adjourned the suit till July 12 for hearing.

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Court reschedules hearing in Ganduje bribery case

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The Kano State High Court in Kano, North-west Nigeria, on Thursday, fixed 15 April to hear objections to the charges pending against a former governor of the state, Abdullahi Ganduje, who is the current national chairperson of the All Progressives Congress (APC).

The Cable reports that, in the case, the Kano State Government charged Mr Ganduje; his wife, Hafsat; son, Umar Abdullahi Umar; and five others, with eight counts of bribery, misappropriation, and diversion of public funds.

The rest of the defendants are Abubakar Bawuro, Jibrilla Muhammad, Lamash Properties Limited, Safari Textiles Limited, and Lasage General Enterprises Limited.

Based on defence lawyers’ request on Thursday, trial judge Amina Adamu-Aliyu rescheduled proceedings for the hearing of the notices of preliminary objection filed against the charges by the defendants.
Earlier at the proceedings on Thursday, the prosecution led by Adeola Adedipe, told the court that he was ready for the hearing of the defendants’ notices of preliminary objection.

Mr Ganduje’s lawyer, Lydia Oluwakemi-Oyewo, similarly expressed readiness for the hearing of the applications.

However, Adekunle Taiye-Falola, the counsel for the 3rd and 7th defendant, said he was not ready to move his preliminary objection.

He said he needed to first regularise his client’s processes filed out of time.

On the other hand, Sunusi Musa, the fifth defendant’s lawyer noted that he had also filed a motion on notice for extension of time since 7 January. He urged the court to grant the application.

The sixth defendant’s lawyer, Abubakar Ahmed, said he filed a notice of preliminary objection as far back as 9 September 2024, and was ready to proceed.

Also, the eighth defendant’s lawyer, Ibrahim Aliyu-Nasarawa, told the court he was not ready to move his application, adding that he intended to file and reply on points of law.

Following this scenario, the trial judge granted all the applications for extension of time and postponed the matter to 15 April for hearing of all pending preliminary objections.

The Kano State Government accused Mr Ganduje in the charges of collecting $210,000 bribe from “people and entities seeking or holding the execution of Kano State Government contract and or project for the remodelling of Kantin Kwari textile market as a bribe through one of the contractors (agent)”.

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Alleged N12 billion Fraud: EFCC demands Otudeko’s physical presence in court

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The counsel in the case of alleged fraud charge brought against the Chairman of Honeywell Group, Oba Otudeko, on Thursday, filed several preliminary objections to the suit before the Federal High Court in Lagos.

The preliminary objections from the accused were contested in court Thursday just as the Economic and Financial Crimes Commission (EFCC) demanded Mr Oba Otudeko’s physical presence in court at the next hearing.

The applications included those challenging the court’s jurisdiction to entertain the case, those asking for stay of arraignment, and those seeking quashing of the charge.

The EFCC had preferred a 13-count charge against Mr Otudeko and a former Managing Director of First Bank Plc., Olabisi Onasanya.

Also charged is a former member of the board of Honeywell Group, Soji Akintayo, and a firm, Anchorage Leisure Ltd.

The N6.2 billion fraud charge is marked FHC/L/20C/2025 and before Justice Chukwujekwu Aneke.

The case was scheduled for arraignment on 20 January, but the defendants were absent on the grounds that the EFCC had not served them with the charge.

Their counsel had argued that they only got “wind” of the case on the pages of newspapers.

The court consequently directed service of the charge by substituted means, and adjourned the case.

On Thursday, Rotimi Oyedepo (SAN) announced appearance for the EFCC and Wole Olanipekun (SAN) announced appearance for Mr Otudeko, while Olasupo Shashore (SAN) appeared for Mr Onasanya.

Kehinde Ogunwumiju (SAN) appeared for Akintayo, while Ade Adedeji (SAN) aanounced appearance for Anchorage Leisure Ltd.

Babajide Koku (SAN) announced appearance for the nominal complainant, First Bank of Nigeria.

Mr Olanipekun informed the court of an application he filed on behalf of Mr Otudeko and dated 28 January which he said was served on the EFCC on 29 January.

He also told the court that there was an affidavit dated 1st February which gave details of Mr Otudeko’s absence in court.

Other defence counsel briefly introduced their applications before the court.

In response, EFCC counsel told the court that he had complied with the court’s directive on substituted service of the charge on the first, third and fourth defendants and had attached a proof of service.

He also told the court that he received processes from Mr Olanipekun confirming that Mr Otudeko was not within the court’s jurisdiction.

Mr Oyedepo added that he received a “harvest of motions” from defence counsel in the suit, objecting to the suit.

He said it was important to know when the parties could return to the court for arraignment of the defendants since the first defendant was absent.

In response, Mr Olanipekun informed the court that he had served an application on the prosecution on behalf of Mr Otudeko, adding that the EFCC had seven days to reply.

He argued that a court had to, first, decide whether it had jurisdiction to entertain the case.

He urged the court to give a date for hearing of the defendants’ applications.

In response, Mr Oyedepo argued that the arraignment of the defendants ought to be taken first before any applications.

He cited the Court of Appeal’s decision in the case of Yahaya Bello as well as the provisions of Section 396(2) of the Administration of Criminal Justice Act (ACJA), 2015.

He submitted that the court should adjourn the case for arraignment of the defendants.

In further response, Mr Olanipekun argued that it was important for the parties to refrain from “pulling cases by a strand of hair”.

Citing judicial authorities decided after the enactment of the ACJA, including Federal Republic of Nigeria (FRN) versus Idahosa and Shema Ibrahim versus FRN, he argued that the court dispensed with the appearance of the defendants in both cases.

On his part, counsel to the third defendant, Mr Ogunwumiju, also argued that it was important for the court to first take the objection by the defence in the interest of justice.

Citing the provisions of Edet versus State as well as Section 412(3) of the ACJA, he submitted that arraigning the defendants before hearing their objections would be prejudicial.

In the same vein, counsel to the second defendant, Mr Shashore, urged the court to hear the applications of defence.

According to him, the fourth defendant seeks an application staying arraignment, and another quashing the charge.

He argued that it would be unfair to insist that the court take the defendants’ pleas to a charge that might eventually be quashed.

He added that it was important for the court to first decide whether there was merit in doing same.

Counsel to the fourth defendant, Mr Adedeji, argued on the authority of Nwadike versus FRN that court processes must not be made to oppress citizens.

He argued that the case of Yahaya Bello as cited by the prosecution was not relevant to the suit, neither was the provisions of Section 396(3) of ACJA.

Mr Adedeji said the defendants ought not to face fraud trial for a civil transaction.

In reply, Mr Oyedepo said the cases cited by defence counsel were out of context and did not reflect the charge.

He urged the court to make an order directing Mr Otudeko to be present in court on the next adjourned date.

At this point, Mr Olanipekun informed the court that Mr Otudeko was under medical review and was advised to remain in the United Kingdom until a comprehensive review and medical advice.

He urged the court not to make such an order but to adjourn the case for hearing of the applications.

The judge adjourned the case until March 17 for ruling on the arguments.

(NAN)

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14 escape death in Third Mainland Bridge auto crash

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No fewer than 14 commuters escaped death in an accident that involved a commercial bus and a private car along the Third Mainland Bridge on Thursday.

We learnt from a statement by the Director of Public Affairs and Enlightenment Department of the Lagos StateTraffic Management Authority, Adebayo Taofiq, that the accident occurred at the Iyana-Oworonshoki area of the bridge when the commercial bus rammed into the private car.

Taofiq blamed the cause of the accident on excessive speeding by the commercial driver which led to a loss of control and the eventual collision.

He said, “The Lagos State Traffic Management Authority has again demonstrated its unwavering commitment to public safety by swiftly rescuing 14 accident victims following a devastating road crash at Ilaje, inward Iyana-Oworonshoki, along the Third Mainland Bridge.

“The incident involving a Mazda commercial bus (XN 997 KTU) was triggered by reckless speeding, resulting in the driver losing control and forcefully colliding with a moving Toyota Yaris (11150 DLA). The impact led to multiple casualties, necessitating an immediate emergency response.

“LASTMA officers, in collaboration with the Lagos State Ambulance Service, acted with commendable urgency, extricating 14 individuals, including the commercial bus driver, from the wreckage.”

He added that the victims who sustained some injuries were rescued at the Gbagada General Hospital by the Lagos ambulance team.

Reacting to the incident, the LASTMA General Manager, Olalekan Bakare-Oki, extended sympathies to the injured victims while stressing the need for speed limit compliance among drivers.

“Upon successful evacuation, the rescued victims were promptly handed over to LASAMBUS personnel, who swiftly transported them to Gbagada General Hospital for immediate medical attention.

“General Manager of LASTMA, Mr Olalekan Bakare-Oki, underscored the pressing need for both commercial and private motorists to comply with officially sanctioned speed limits to avert needless road fatalities.

“He extended his deepest sympathies to the injured and wished them a swift and complete recovery,” Taofiq concluded.

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