N1.8 Billion Debt: Court Endorses AMCON, Kola Abiola’s Terms of Settlement

Ololade Adeyanju/

A Federal High Court in Ikoyi has endorsed the terms of settlement filed before the court by Asset Management Corporation of Nigeria (AMCON) and the son of the late Chief M. K. O. Abiola, Alhaji Abdulateef Kolawole Abiola, his company – 35 Oil and Gas Nigeria Limited, and Dr Zulikat Wuraola Abiola.

The consent judgement was sequel to a debt recovery suit of N1, 891, 532, 469 .21 filed against the defendants, 35 Oil & Gas Nigeria Limited, Mr Abdulateef Kolawole Abiola, Dr Zulikat Wuraola Abiola and one Mr Tajudeen Olawale Jinadu.

The court in its ruling dated June 17, 2019, predicated on an application filed and argued before it, granted an order directing 19 commercial banks in Nigeria named in the application to freeze the accounts of the defendants to the sum of N1, 891, 532, 469 .21 pending the final determination of the suit.

The Court also granted the following orders:

Directing all the financial institutions within the jurisdiction of the Court, particularly those named in the application filed before the Court to produce and furnish the statement accounts of the defendants stating the total sum standing to their credit within seven days of the service of the ruling of the court on them.

The interim forfeiture of the interest of the defendants in:

I. 35 Oil&Gas Nigeria Limited.

ii Crittal-Hope Nigeria Ltd.

iii. Banusho Fishery Ltd.

iv. Beta Glass Plc.

v. Management Transformation Ltd.

An order of Interim possession to the claimant of the following properties of Mr Tajudeen Olawale Jinadu at:

Plot 211E, Block 13, Amuwo Odofin area of Lagos State

Plot 28, Block 29, Ipaja New Town Residential Scheme, Alimosho Local Government Area of Lagos State.

Property along Ijaye Street, off Idimu Road, Oduwole, Alimosho Local Government Area of Lagos State

The property at Babs Adepegba Close, Fagba, Iju Road, Ifako Ijaye Area of Lagos State.

Property at 5, Akintan Street, Dideolu Estate, Ogba, Lagos State.

The properties are to be temporarily forfeited pending the final determination of the suit.

In a related development, the Court, in its ruling dated 5th of July, 2019 predicated on application filed by AMCON, also granted an order of substituted service to serve the defendants the court process through the front desk staff or administrative staff of 35 Oil & Gas Nigeria Limited in its office at 7 and 8, Udi Street, Foreshore-Osborne, Ikoyi, Lagos.

Subsequently, the case was adjourned till July 10, 2019, for the argument of Mr Tajudeen Olawale Jinadu for an order setting aside the interim order made by the court on June 17, 2019.

The court in its ruling dated 10th of July, 2019, granted an order setting aside the order granted against Jinadu and struck out his name from the suit.

Thereafter, the Terms of Settlement was filed, urging the court to endorse it as their consent judgement.

In the terms of Judgement, the parties – AMCON, 35 Oil & Gas Nigeria Limited Mr Abdulateef Kolawole Abiola, and Dr Zulikat Wuraola Abiola respectively agreed to the complete, full and final settlement of the AMCON claim against the aforementioned Defendants on the following terms.

The defendants would pay a concessionary sum of N373, 620, 518 .42k in full and final settlement of AMCON.

Upon the execution of this Terms of the settlement between the parties and upon entering same as the consent judgement in the matter, the defendants would make immediate good faith payment of a sum of N73, 620, 518 .42k which they have already paid.

The restructured balance of N300million of the settlement amount of N373, 620, 518 .42k shall be paid in six calendar months in the monthly instalment of N50million, and the effective date for repayment of the restructured amount shall be from July 18, 2019, through December 17, 2019.

Upon acceptance of the terms of this settlement, the defendants waive their right to contest the debt and charges thereon with either Unity Bank Plc, Keystone Bank Ltd or AMCON in this matter.

All the concession granted under the terms of settlement shall be revoked by AMCON if the defendants default.

The presiding Judge, Professor Chuka Obiozor, endorsed the terms of settlement as a consent judgement.

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