Oil firm, directors dragged to court over N1.4billion debt

Unless a Federal High Court, Ikoyi, Lagos decides otherwise, a Petroleum Company, Titanium Oil and Energy Limited, may pay a debt of N1,472,621,811.25 owed Asset Management Corporation of Nigeria (AMCON).

Joined as co -defendants are three Directors of the company, namely: Patrick Acholonu, Chief Ralph Ekezie, Steve Chidi -Agbarakwe, and two other persons alleged to have benefited from the loan Ms Cyhthia Ukaoha and Ms Adannaya Patricia Acholonu.

According to a statement of claim filed by a Lagos based lawyer, Adekunle Osibogun,It was alleged that sometimes in 2008,Titanium Oil and Energy Limited company applied for and was granted two loan facilities by the then Spring Bank Plc for the sums of $5,800,000 and N700 million to finance the procurement of refined Petroleum products, the company failed and refused to repay the loan to the then Spring Bank Plc.

By letter dated 26th of January, 2011 Spring Bank Plc, notified the defendants that AMCON had assumed full responsibility for the management of the Company’s outstanding indebtedness to Spring Bank Plc as an eligible Bank asset, since the defendants had failed to liquidate their non -performing loans with the bank.

AMCON averred that despite repeated demands the defendants have failed and refused to liquidate their total outstanding indebtedness which as at September, 11,2017.stood at N1,472,621,811.25 which has continue to attract interest.

Consequently, AMCON claims against the defendants jointly and severally are as follows : the sum of N1,472,621,811.25 being the outstanding and unpaid debt as at September 11,2017.

Interest on the said sum of N1,472,621,811.25 at the rate of 15% per annum from September 11,2017 till final liquidation of the debt by the defendants.

Peter Fowoyo