A Federal High Court in Lagos will on July 13 commence hearing on the application filed by United Bank for Africa Plc (UBA) against an energy firm, Integrated Energy Distribution and Marketing Company, a firm promoted by Mr. Olatunde Ayeni, a former Managing Director and Chief Executive of Skye Bank now Polaris Bank over their refusal to pay their outstanding indebtedness to United Bank for Africa Plc.
Justice Daniel Osiaigor fixed the hearing date following an interim order of Mareva Injunction of July 2, restraining Integrated Energy Distribution and Marketing Company Ltd and Polaris Bank (1st and 2nd Defendants respectively) from tampering, howsoever, with funds standing to their credit up to $6,759,000 (about N2.8 billion) or its equivalent in any currency in 25 banks, the Debt Management Office and Federal Ministry of Finance, who were also cited as respondents in the matter. Mareva Injunction is a Court order which effectively freezes assets of a defendant from being dissipated pending the outcome or completion of a legal action before the Courts.
The judge made the order following an application file by UBA on June 29 and argued by its counsel, Temilolu Adamolekun, who appeared with Gbenga Akinde-Peters, supported by an affidavit sworn to by Anike Isinguzo and Exhibits attached.
The judge also restrained the 3rd to 26th Respondents (Nigerian Banks) or their agents from releasing the monies to the defendants.
Justice Osiaigor also restrained the energy firm from dealing with any of the monies standing to its credit in all of its accounts, or any money in which it has any interest held on its behalf with the 27th to 29th Respondents up to $6,759,000 or its equivalent.
Polaris Bank was also restrained from dealing with any of the monies, instruments, Sovereign Debt Notes, Promissory Notes, Treasury Bills or any other instrument in which it has an interest or standing with the 27th, 28th and 29th Respondents, to the tune of $6,759,000 or its equivalent.
In making the Mareva Injunction, the Judge also restrained the 27th, 28th and 29th Respondents (CBN, Debt Management Office and the Federal Ministry of Finance) from releasing any monies or funds belonging to the 2nd Defendant or wherein the 2nd Defendant has an interest up the $6,759,000 or its equivalent.
The court also directed the 3rd to 29th Respondents to disclose on oath the total sum of money or funds in their custody belonging to any of the Defendants.
Justice Osiaigor held that the interim order of Mareva Injunction would subsist pending the hearing and determination of a motion on notice.
Ayeni, the former MD of Skye Bank (now Polaris), through his firm, Integrated Energy, in conjunction with Capt. Hosanna Okunbor and a former military head of state, Gen Abdulsalami Abubakar (rtd), won the bid for 60 percent stake/of the shares in the Ibadan and Yola Electricity Distribution Companies for N228million under the privatisation exercise of the Power Holding Company of Nigeria (PHCN) Assets sometime in 2013.
The Ayeni through the energy firm thereafter applied obtained a $162,400,000 syndicated loan from the UBA and other lenders- Polaris (the 2nd Defendant, formerly Skye Bank Plc), Diamond Bank Plc now Access Bank Plc, First City Monument Bank Ltd, Heritage Bank Plc and Keystone Bank Ltd to enable it fund the transaction.
Under the agreement signed by the lenders, Polaris Bank (formerly Skye Bank) was appointed the Facility Agent in respect of the facility, to among others, ensure the repayment of the loan.
UBA’s total disbursement to Ayeni’s Integrated Energy was $35million to enable it acquire the 60percent interest in the power companies.
In 2014, following the escalation of of Boko Haram terrorists, the energy firm declared force majeure and returned the Yola Disco to the federal government on the grounds of its inability to access the Yola Disco’s assets due to insecurity in the area.
Integrated Energy and the Nigerian government thereafter reached an agreement on refund and payment of compensation to the energy firm (Integrated Eneegy).
The energy firm allegedly reneged in the payment of its outstanding indebtedness to UBA, after being refunded by the government, prompting the Bank to approach the court.
UBA averred in its affidavit that Integrated Energy won the bid to acquire 60 per cent stake/of the shares in the Ibadan and Yola Electricity Distribution Companies following the privatisation exercise of the Power Holding Company of Nigeria (PHCN) Assets sometime in 2013.
The energy firm, UBA further averred, applied to and received a $162,400,000 syndicated loan from it (UBA); the 2nd Defendant (formerly Skye Bank Plc), Diamond Bank Plc now Access Bank Plc, First City Monument Bank Ltd, Heritage Bank Plc and Keystone Bank Ltd (jointly referred to as the lenders).
The plaintiff also said the lenders had agreed to the appointment of the 2nd Defendant (Polaris (Skye Bank) as the Facility Agent in respect of the facility to, among others, ensuring the repayment of the loan.
Based on that, the plaintiff said it disbursed the sum of $35 million to the 1st Defendant (Integrated Eneegy) to enable it meet the purpose(s) for which it needed the pooled funds.
According to the plaintiff, the energy firm was unable to conclude the transaction on Yola Electricity Distribution Company (Yola Disco), owing to the insurgency in North-East and it invoked the force majeure protection clause enshrined in the agreements and demanded a refund of the invested sum from the federal government.
It averred that sometime in March, 2020, the Federal Government of Nigeria paid the final installments of the refund (recovered sum) to Integrated Energy and Polaris Bank (1st and 2nd Defendants).
The UBA had informed the judge that the remaining tranche of its share of the said recovered sum has since been withheld by the Defendants, particularly the 2nd Defendant, (Polaris).
Cited as 3rd to 26th respondents are: Access Bank plc), (Citibank Nigeria Ltd), (Diamond Bank Plc), (Ecobank Nigeria ltd), (Enterprise Bank Ltd.), (Fidelity Bank Plc.),( First Bank of Nigeria Plc.), (First City Monument Bank Plc), (Globus Bank Limited), (Guaranty Trust Bank Plc), (Heritage Bank Plc.), (Jaiz Bank Limited), (Keystone Bank Limited), (Polaris Bank Limited), (Providus Bank Limited), (Stanbic IBTC Bank Nigeria Ltd.), (Standard Chartered Bank Ltd.) (Sterling Bank Plc.), (SunTrust Bank Nigeria Limited). (Titan Trust Bank Limited), (Union Bank Plc), (Unity Bank Plc.). (Wema Bank Plc.) and (Zenith Bank Plc). The DMO and Finance Ministry are the 28th and 29th respondents respectively.