Carnco Dragged To Court Over Unpaid Loan

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In a bid to recover the debt of N172,150,201.09, Afribank Plc has dragged Carnco Foods Nigeria Ltd and  two of its directors; Mrs. Neela Sankey and Amit Sankey before a Federal High Court in Lagos.

The bank alleged that sometime in January 2006, Carnco Food Nigeria Ltd applied for the renewal of its  existing facilities comprising the following (a) overdraft of N75 million; (b) a short term working  capital of $1 million; (c) a short term loan for local purchase of N10 million and (d) a duty finance  of N15 million.

The facilities were allegedly guaranteed by Mrs. Neela Sankey and Amit Sankey.

The bank said that all its efforts  to recover the debt from Carno Company proved abortive as the  company refused and neglected to repay the facilities.

Therefore, the outstanding balance to be paid by the company as at 18 May, 2010 remains  N173,150,201.29 with the accrued interest that was guaranteed by Mrs. Neela Sankey and Amit Sankey,  vice chairman and managing director of the company respectively.

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The claim of Afribank Plc against Carno Food Nigeria Limited is in the sum of N172,150,201.29 with  interest at the rate of N20.5% per annum from 12 May, 2010 until judgement is delivered and  thereafter, interest at the rate of N10% per annum until the debt is liquidated.

In its defence, the company, while denying almost all the averments of the Afribank, said that the  bank, without consulting with it, collapsed all the facilities, varying interest rates and tenures  into its assent and arrived at the stated figure as debt. This was disputed and is been challenged by  Carnco in several correspondents and is the subject of litigation in suit number LD/1270/10 at the  Lagos High Court in which the bank is a defendant.

In their defence, Mrs. Neela Sankey and Mr. Amit Sankey specifically denied that they executed a  personal guarantee sequel to any letter of offer or any other transaction.

In view of this, they urged the court to dismiss the suit with substantial costs as it is frivolous  and vexations.

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