2nd June, 2010
An infrastructural telecommunication provider company, Alan Dick (West Africa) whose insolvency and liquidation was alleged to have been as a result of MTN Communications Limited indebtedness to it has slammed a N13 billion suit on the MTN communication.
According to a suit filed before Justice Tsho of a Federal High Court in Lagos by a Senior Advocate of Nigeria, Dr. S.P.A. Ajibade, it was alleged that in the course of the duties of the liquidators of Alan Dick company, the liquidators discovered that MTN indebtedness to the company was in the sum of N1,263,327,966.54.
Consequently, the liquidators notifiedÂ MTN company by a letter requesting how the debt could be liquidated.
In its response, the defendant in one of their meetings, MTN admitted owing the plaintiff the sum of N1,259,489,524 but deducted N153,401,931.71 from the admitted sum purporting it to be the sum total of debt owed it by Alan Dick company in the course of rendering services prior to its liquidation, therefore leaving an admitted balance, of the sum of N106,087,592.95 as due and owed the plaintiff.
The plaintiff then contended that the defendantâ€™s claim is spurious and an after thought designed to eclipse its admitted indebtedness to it.
However, the plaintiff alleged further that since the discovery of the debt the defendant has refused to liquidate the debt.
Allan Dick company was alleged to have obtained N3,392,440,172 credit facilities towards the execution of job order obtained from MTN communication company.
Allan Dick company also alleged that the MTN communication indebtedness to it was the main cause of its insolvency and liquidation as some of the debts due to it from MTN were due and owed as far back as 2007. The loan facilities obtained from banks continue to accumulate huge interest running into hundreds of million of naira.
The plaintiff also contended that pecuniary problems occasioned by the defendantâ€™s indebtedness deteriorated to such abysmal point that it was no longer able to pay its loan, meet its tax obligations as well as pay its subcontractors involved in the execution of the defendant projects.
The plaintiff is owing nine companies about N9.9 billion.
In view of this debt burden the plaintiffâ€™s claim against the defendants are as follows:
The sum of N1,106,087,592.95 being the debt admitted by the plaintiff; the sum of N153,401,931.71 being deduction made by the defendant but admitted.
The sum of N9,959,201,495 being loss and damages suffered as a result of the defendantâ€™s failure to honour its obligation.
Also, N2.5 billion is being demanded as general liquidation plus 15% interest since liquidation.