Court Urged To Wind Up Firms

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Two limited liability companies, Caverton Offshore Support Group Limited and Caverton Marine Limited, may cease to exist if a Federal High Court sitting in Lagos, South West Nigeria, accedes to the request of Bank PHB that both companies be wound up on the ground that they are insolvent.

In two separate suits filed before the court by Chief Ajibola Aribisala (SAN) on behalf of Bank PHB Plc, Caverton Offshore Support Group and Caverton Marine Limited were alleged to be owing the bank N4,218,075,776.25 and N474,394,323.11 respectively.

On 12 June, 2008, the bank reportedly granted Caverton Offshore Group a loan of N3.5 billion for a pre-private placement bridge facility to raise N16 billion to scale up its operations and take advantage of long term business opportunities in the oil and gas sector of the Nigerian economy.

A deal of corporate guarantee was issued and executed by Messrs. Vetiva Capital Management Limited on behalf of the company. In addition, the chairman, Mr. Aderemi Makanjuola, deposed to an affidavit to guarantee the loan and also issued a deed of personal guarantee in favour of the bank.

In the second suit, it was alleged that sometimes in 2006, Caverton Marine Limited was granted a loan of N519,642,485 which the Board of Directors passed and served Bank PHB with a duly proposed and passed board resolution accepting the loan and authorised the chairman, Aderemi Makanjuola to accept on behalf of the company.

The loan facility was meant to be used for the overhaul of the company’s vessel called MV Awero and was secured with legal mortgage over the following properties located at 9, Akin Lakanu Street, Ikeja, Lagos and Plot 34, House 182, Victoria Island, Lagos and personal guarantee of Aderemi Makanjuola and Olabode Makanjuola, who are the chairman and director of the company respectively.

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However, the companies have failed to pay back the loan despite repeated demands and this has led to the Central Bank of Nigeria to classify the companies’ accounts as non performing during the recent audit of the bank.

Consequently, the indebtedness of the companies remained unpaid and continued to accrue interest charges to the detriment of the shareholders and depositors of the bank.

It then averred that the two companies are insolvent and unable to pay its debts, therefore it is just equitable that they be wound up under the provision of the Companies and Allied Matters Act 2004.

The presiding judge, Justice Olatoregun Isola, has adjourned till 29 March, 2011 when legal arguments will resume.

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