N10.7bn debt: Lister Flour Mills, First Bank move to settle out of court

First Bank of Nigeria Plc

First Bank of Nigeria Plc

First Bank

By Akin Kuponiyi

A Federal High Court sitting in Lagos, Southwest Nigeria has adjourned till February 17, 2020, for First bank of Nigeria Limited and Lister Flour Mills, the company owned  by late Ibadan business mogul, Arisekola Alao  to file another term of settlement in a N10.7 billion debt recovery suit pending before the court.

The  initial  terms of settlement filed before the court was alleged to have been aborted.

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When the matter was mentioned, the counsel representing First bank told the court that the terms of settlement filed before the court cannot be adopted because the defendants, Lister Oil Limited  Mills and Mrs Khadijah Alao -Straub have scuttled the  terms of the settlement, consequently they are fine-tuning another terms of settlement.

First bank Nigeria Limited  was alleged to have granted credit facilities (Loans) to LISTER FLOUR MILLS (NIGERIA) LIMITED, which facilities were renewed and restructured and eventually culminated into a debit balance of N10, 787,556,430.02 while interest continues to accrue.

However, the parties have now agreed to settle and resolve this legal action together with other related suits arising from receivership upon the time and conditions stated in the terms of settlement.

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