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HomeTop NewsEcobank Nigeria seeks to takeover Honeywell Group, Otudeko assets over N4.1 bln...

Ecobank Nigeria seeks to takeover Honeywell Group, Otudeko assets over N4.1 bln debt

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Ecobank Nigeria Limited is seeking the permission of the Federal High Court in Lagos to take over all the assets of Honeywell Group Plc, majorly owned by Oba Otudeko, over an alleged N4.1 billion outstanding debt.

In a bankruptcy suit filed by the commercial lender’s counsel Kunle Ogunba of Insolvency Forte, Ecobank is also asking the court to compel Otudeko, who personally guaranteed the loan to his companies to submit the statement of his net worth for the purpose of defraying the debt.

It claimed that Otudeko was indebted to it following the alleged failure of his three firms – Honeywell Flour Mills Plc, Siloam Global Services Limited and Anchorage Leisures Limited – to liquidate a loan granted them.

The bank said the businessman should avail it of his “statement of affairs, statement of net worth and other credible financial details requisite and in furtherance to the Bankruptcy Act.”

The bank also prayed the court to grant it leave to “appropriate or otherwise utilise the investments, shares or other interests of the debtor (Otudeko)” in all the companies and any other one “in Nigeria or outside Nigeria in partial or full satisfaction of the debt due.”

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It seeks “a receiving order against the estate, funds, investment, shares or other interest of the debtor” in Siloam Global Services Limited, Honeywell Group Limited, Honeywell Flour Mills Plc, Anchorage Leisures Limited and Honeywell Oil and Gas Limited.

The other companies are Uraja Real Estate Limited, Broadview Engineering Limited, Uraja Power Solutions Limited, Honeywell Energy Resources Limited, Hudson Power Limited, Pivot Engineering Limited and Pavillion Technology Limited.

The bank prayed for the order to cover any other company in which Siloam Global Services Limited holds interest either directly or indirectly within and outside Nigeria.

However, Otudeko filed a preliminary objection, urging the court to either dismiss/strike out the suit or stay proceedings “in deference to arbitration.”

He described the suit as an abuse of court processes, contending that it was filed in gross violation of Section 7(1)(a) of the Bankruptcy (Proceedings) Rules Cap B2, Laws of the Federation of Nigeria, 2010.

The case will come up for hearing on September 29 as Justice Akintayo Aluko did not sit on Wednesday.

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