Providus Bank fights to recover N3.7 billion from E-Settlement Limited

By Akin Kuponiyi

Providus Bank Limited has taken legal action to reclaim a substantial loan totaling N3,743,152,598.57 advanced to E-Settlement Limited.

Filed at the Federal High Court in Lagos, the bank sought to overturn an order permitting E-Settlement to convene a creditors’ meeting for a proposed scheme of arrangement.

According to an affidavit by Providus Bank‘s Head of Loan Recovery & Remedial Management, Olayinka Lawuyi, the bank provided E-Settlement with a N2.6 billion overdraft facility to aid in restructuring its loan obligations.

This facility, originally due for repayment on January 3, 2025, was intended to be repaid based on the company’s cash flow projections.

The legal dispute arises as E-Settlement pursued a court-ordered creditors’ meeting, claiming indebtedness totaling N12,458,553,150.

E-Settlement proposed settling this debt with a $2,000,000 payment, allegedly representing the entirety of its liabilities to all creditors, including Providus Bank.

The bank contended that E-Settlement misled the court by not disclosing ongoing private negotiations regarding loan restructuring.

Moreover, Providus asserted that E-Settlement’s proposed scheme unfairly favoured= certain creditors and was obtained without proper consideration of Providus Bank’s objections.

The court has adjourned further proceedings on Providus Bank’s application challenging the validity of E-Settlement’s creditor meeting order.