Bank Wants Firm Wound Up Over Unpaid Debt

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Stanbic IBTC Bank Plc has filed an application for the winding up of a limited liability company Myeko Nigeria Limited over its inability to pay its debt.

According to a winding up petition filed before a Federal High Court in Lagos, on behalf of Stanbic IBTC Bank Plc against Myeko Nigeria Company, what led to the current legal action started sometime in April 2009 when the company approached the bank for a credit facility of N500 million to finance the procurement of bulk refined petroleum products.

By a resolution of the board of directors of the company passed on 4 April, 2009, the facility was accepted.

A deed of debenture dated 31 July, 2009, personal guarantees of Junior Adewumi and Kelechi Dozie who are directors of the company were all used as security for the loan.

As at 30 November, 2011, the outstanding debt balance in the company account with the bank on the facility granted to the company stood at N57,231,736.63 with interest still accruing at the agreed interest rate.

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The petitioner alleged further that the repayment has since been overdue but the company has failed to liquidate its indebtedness to the bank. By its letter of 9 November, 2010, the bank asked the two guarantors to liquidate their indebtedness to the bank which as at 31 October, 2010, stood at N40,689,410.71.

Upon the receipt of the demand letter, the company, vide its letter of 11 January, 2011, requested for restructuring but the terms of the request were unacceptable to the bank. Thereafter, various ultimatums given to the company by the bank have elapsed, but the company failed to repay the sum due to the petition.

Consequently, the bank instructed the law firm of Chief Wale Taiwo to file the winding up petition.

In the circumstance, the petitioner averred that it is just and equitable that Myeko Nigeria Limited be wound up because of its inability to pay its debt.

The petitioner prayed the court that Myeko Nigeria Limited be wound up under the provision of Section 408 (d) and 409 (a ) of the Company and Allied Matters Act Cap C 20 Laws of the Federation of Nigeria, 2004.

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