7th April, 2011
Skye Bank Plc has dragged Major-General Mohammed Magoro (retd) and his company, Automobile Manufacturers Company, before a Federal High Court in Lagos, over an alleged unpaid debt of N104,061,688.30.
According to a statement of claim filed before the court by Barrister Kayode Ajekigbe from the law firm of Chris Okunowo, the bank alleged that at various times between February 2001 and January 7, 2002 granted Automobile Manufacturers Company various facilities in the sum of N111,800,000.
General Mohammed Magoro, who is the chairman and director of the company, was alleged to have made and executed full and unconditional personal guarantee for the facility amount and accrued interests on behalf of the company in favour of the bank.
The loan was further secured by a letter of credit for the transaction and bill of laden to be consigned to the bank, a loan in favour of the bank over the company’s vehicles via the consignment of shipping documents to the bank and the bill of laden made to the bank and blank endorsement and domiciliation of payment.
The various facilities were for an agreed period and they have since matured for repayment, but the defendants have failed to repay the outstanding facilities within the agreed period despite several demands by the plaintiff as a result of which there is an outstanding sum of N104,061,683.30 which is yet to be paid.
Consequently, by a letter dated 5 February, 2009, the bank made a final demand for repayment of the aforesaid debt facilities from Automobile Manufacturer Company, failing which the defendants were informed that steps would be taken to recover all the indebtedness and the accrued interests thereon.
Also, the bank, through various correspondences, called on the personal guarantee of Major General Magoro and has through its solicitor’s letter of 16 February, 2009, informed him of its intention to institute a legal action to realise the total sum outstanding against the company by calling the personal guarantee of Major General Magoro.
As at 19 January, 2004, the defendants’ indebtedness on account of the various facilities stood at N104,061,688.30.
Consequently, Skye Bank claims against the defendants jointly and severally, N104,061,688.30, being the outstanding amount owed the bank as at 19 January, 2004, by the Automobile Manufacturers Company which were personally guaranteed by Major General Magoro.
Interests on the said sum from 19 January, 2004 at the rate of 35 per cent per annum up till date of judgment and the cost of this legal action were assessed at N500,000.
Justice Okechukwu Okeke has adjourned till 28 April, 2011, for further hearing.
