Obat oil in debt crisis as depot sealed up…

Things are not going well with the King of Ugbo kingdom, Oba Obateru Akinruntan’s business conglomerate. While the oil and gas aspect of the business is struggling for breath with the AMCON, sources say banks are already threatening fire and brimstone to take over the business mogul’s property concern in Abuja. Already, the shopping mall in Abuja is as good as being taken over by Ecobank over a huge debt hanging on the company’s neck. While many are asking how it all went so bad for the company, fingers are being pointed to the King’s kids that prodigally ran the companies while the old man went to lead his kingdom as a traditional ruler.

The above was how this medium reported about the state of Obat’s businesses few weeks and now things have fallen apart and the Centre can no longer hold. This is as a result of a court order recently granted Skyebank by a High Court to take over Obat oil and gas depot over 2.1 billion naira debt.

As a result of the order, the company was sealed up recently while vehement denial by the oil company was in the air, the reality is that the company is swimming in troubled water.

Skye Bank had sought to recover a loan debt of the sum of N2,142,462, 572.26 owed it by Obat Oil and Petroleum. The loan was guaranteed by His Imperial Majesty, Oba (Dr.) Frederick Eniti Akinruntan. The bank further sought to recover 15 per cent interest on the amount from April 2014 till the liquidation of the debt.

The case was taken before an arbitrator, Aare Afe Babalola (SAN), during which Obat Oil and Dr. Akinruntan appealed for concessions and waivers on the amount of accrued interest, fees and commissions. After the arbitration, the Arbitrator held that it would be fair and equitable to award N1,406,944,352.76 to the claimant, which represents the amount the respondents admitted as being the outstanding balance as at March 31 2014. Aare Babalola also awarded 10 per cent interest annually on the N1.4billion from the April 1l, 2014, till final liquidation of the amount.

The bank, however, alleged that Obat Oil and Dr Akinruntan failed to comply with the Arbitration Award. It applied to the court to order the award’s enforcement. While granting the application, Justice Dagat made an order granting Skye Bank leave to enforce the Arbitration Award against the respondents. In compliance with the order, Skye Bank yesterday proceeded to enforce the Arbitration Award against Obat Oil and Petroleum and Oba Akinruntan.

Source: Newsofthepeople.