14th April, 2011
A real estate development and marketing of commercial and residential properties company, Prime Waterview Limited, may cease to exist if a Federal High Court in Lagos accedes to the request of a finance company, PHB Asset Management Limited, that it be wound up.
PHB Asset Management Company alleged that Prime Waterview Limited is insolvent and unable to pay its debt of N1,957,303,754.27.
According to a petition filed before the court by a Lagos lawyer, Barrister Ayoola Ajayi, on behalf of PHB Asset Management Company, the petitioner alleged that between April 2009 and October 2009, by virtue of an agreement between the company and Price Waterview Limited, it invested a total principal sum of N1,300,000,000 in the property acquisition scheme of the company and that the tenor mutually agreed upon in respect of each of the investments have since matured since 2010.
It was further alleged that up till date, the real estate company has paid only N140 million to the petitioner out of the total sum of money it contractually obliged to pay to the petitioner as principal and capital gains.
Contrary to the provisions of the agreements which required the petitioner and the company to agree on sale of the luxury properties that were the subject of the companyâ€™s property acquisition scheme in which the petitioner had invested the sum of N1.3 billion,Â Price Waterview company resorted to selling the properties surreptitiously without the knowledge of the petitioner and has been diverting the proceeds.
In a bid to recover the debt, the petitioner has made several written and verbal demands for payment, but the company has not been able to pay.
The petitioner also alleged that despite being insolvent, the company has hidden this fact from the public and continued to lure unsuspecting investors and creditors into its web of debts.
For instance, the company is alleged to have purportedly engaged in an ongoing multi billion naira luxury property development projects in high brow areas like Ikoyi, Victoria Island and Lekki Peninsula.
It was also alleged that the company sought and obtain credit facilities from unsuspecting banks and financial institutions who are being lured by the prospects of turning a profit on their lending to the company.
Consequently, the petitioner contended that it is imperative that this petition be advertised to the general public in order to warn and prevent more unsuspecting potential creditors and investors from falling into the hands of the company and also to enable its existing creditors and investors to cut their losses by winding it up so that the proceeds realised from the sale of its assets may be used to satisfy the companyâ€™s burgeoning financial liability to the petitioner and other creditors and investors.
The petitioner then urged the court to wind up Prime Waterview Limited under the provision of the Companies and Allied Matters Act Cap C 20 Laws of the Federation of Nigeria, 2004, due to its inability to pay the debt of N1,957,303,754.27.