Innoson to GTB: Allot shares to us if you can’t pay N8.7bn debt

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...

List of Mobile Phone USSD Codes for Money Transfers for All Banks in Nigeria

As technology evolves, the financial sector is not left behind, Several softwares have been developed to make banking easier...
Innoson to GTB: Allot shares to us if you can’t pay N8.7bn debtInnoson to GTB: Allot shares to us if you can’t pay N8.7bn debt

Guaranty Trust Bank’s bid to stop Innoson from taking it over nosedived last week Friday, April 5th, 2019 as the Federal High Court sitting in Ibadan refused to hear or grants it an injunction to restrain Innoson from continuing to levy execution against it; the court also refused to stay the execution.

Despite the decision of the Supreme Court on February 27th 2019 dismissing the appeal by Guaranty Trust Bank (GTB) and affirming thereby the concurrent judgment of Court of Appeal, Ibadan division and Federal High Court Ibadan which ordered GTB by way of Garnishee Order Absolute to pay Innoson Nigeria Ltd the sum of N2.4 Billion with a 22% interest, per annum, on the judgment sum until the final liquidation of the judgment debt, the bank is yet to comply with this order.

In order to stop Innoson from continuing with taking over its assets in execution of the aforesaid judgment GTB approached the Federal High Court, Ibadan on Friday, 5th April 2019 and requested the court, through a motion, to stay execution and or for an injunction restraining Innoson from continuing with executing a judgment which the Supreme Court has affirmed when it dismissed the GTB’s appeal against the Court of Appeal’s decision affirming the High Court’s judgment and order in favour of Innoson.

Read:  Why GTB Did Better Than Zenith In 2016

We have previously stated that in a garnishee proceedings, once an order of garnishee nisi is made, the garnishee is required by law to set the amount involved aside and will not allow the judgment debtor to withdraw from it; and if the order is made absolute, the garnishee pays the money to the judgment creditor and incurs no liability for doing that but if the order is not made absolute the garnishee returns the money to the judgment debtor.

- Advertisement -
Read:  DHL Global Trade Barometer: World Trade At crossroads

It will be recalled that the order was made absolute since 29th July 2011 and GTB held unto the money from that time and is using it for its business. It follows that by the time the order was made absolute it was no more the judgment debtor’s money but rather that of Innoson Nigeria Ltd who is the judgment creditor; if a garnishee refuses to comply with the order, then, it becomes a judgment debtor, as GTB has become in the present case, against whom execution of the order will issue.

Read:  Legal Explainer: Innoson “Takes Over” GTBank - Meaning.

Innoson Nigeria Ltd is aware that GTB had earlier deposed to an affidavit in the court that its banking operation will be seriously and adversely affected, and also it’s capital base eroded if it complies with the order of the court.

Based on the foregoing and in furtherance of the letter to GTB by Counsel to Innoson Nigeria Ltd, McCarthy Mbadugha & Co on March 25th, 2019 that it pays the N2.4B Judgment debt to Innoson Nigeria Ltd with the accrued interest of N6,717,909,849.96, Innoson Nigeria Ltd therefore demands from GTB that if it’s banking operation will be seriously and adversely affected, and its capital base eroded as a result of the N8.7B judgment debt, that it should as a matter of utmost urgency convert the said sum or part of it into shares and allot same to Innoson Nigeria Ltd. This will save taking it over in the manner Innoson is doing.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

Latest News

Third-party Cookies Are Already Ineffective’: Lessons From Google SameSite Delay

The COVID-19 crisis has inadvertently provided a reprieve for developers who have been too slow to adapt to Google’s...

United Capital Plc Raises N5.3 billion in Commercial Paper Issuance

United Capital Plc (the Company), a leading Pan-African financial and investment services Group has confirmed that the Company has successfully raised N5.3 billion in...

ILO: COVID-19 Causes Devastating Losses In Working Hours And Employment

The COVID-19 pandemic is having a catastrophic effect on working hours and earnings, globally. A new ILO report highlights some of the worst affected...

Mastercard Commits $250 Million To Support Small Business’ Financial Security

Our local main streets have been amongst the hardest hit from the COVID-19 pandemic. To help address this challenge, Mastercard today announced a commitment...

Deutsche Post DHL Group Responds To Uncertain Global Macroeconomic Development as a Result of the Pandemic

The spread of the Coronavirus-Pandemic presents society and the economy with unexpected challenges. “Our services, which are focused on keeping up supply chains and...
- Advertisement -
BrandsPur Weekly Cartoons
%d bloggers like this: