The United Bank for Africa (UBA) Plc has taken over the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt, and Kano.
The bank’s action followed an order of the Federal High Court in Lagos over an alleged N156,026,032,804.84 debt.
Last Friday, the bank’s receiver-manager, Romeo Michael, and court bailiffs, under police protection in the three cities, executed the interim orders delivered by Justice Akintayo Aluko on October 20.
The judge made the order after hearing Temilolu Adamolekun, who appeared with Mohammed Usman, moving the motion ex parte as counsel for the plaintiff/applicants in the suit.
The order subsists pending the hearing and determination of the motion on notice.
The case was adjourned till November 20 for hearing of the Motion on Notice.
The order also affects the defendants’ funds totalling N156 billion in commercial, microfinance and other financial institutions across the country.
The first to fourth plaintiffs/applicants in the suit are: UBA Plc, UBA Cameroon SA, Cote D’Ivoire SA, and Romeo Ese Michael.
The first to 11th defendants/respondents are: Stallion Nigeria Limited (in receivership), Von Automobile Nigeria Limited, Popular Farms and Mills Limited, Havana Nigeria Limited.
The other defendants are: KRBL Food Industries Limited, Qingqi Motorcycle Manufacturing Limited, Stallion Auto Keke Limited, Stallion Motors Limited, The Honda Place Limited, Yokohama Construction Limited, and Mr. Sunil Vaswani.
In granting UBA’s prayers, Justice Aluko also restrained the defendants, their directors, shareholders, employees, officers, and agents, from interfering with or frustrating the receiver/manager from exercising all the powers vested in him or performing his duties as receiver of the mortgaged properties, among others.
According to the affidavit deposed to on October 18 by Mr. Anthony Chilaka, Group Head, Recovery and Remedial Management Department of the first to third plaintiffs’ companies, UBA, in 2014, gave various credit facilities to the first defendant (Stallion Nigeria Limited).
Both parties agreed that the credit facilities could be used and were used by Stallion’s sister companies, that is, the second to 10th defendants, in accordance with the offer letter.
As security for the various loans, the defendants mortgaged their aforementioned assets in Port Harcourt, Lagos, and Kano.
Sometime in 2014, Stallion Motors (eighth defendant) was awarded a contract by the Federal Government to supply 700 Ashok Leyland trucks/Stallion troop carrying vehicles and 50 Falcon-seater buses to be used by the military with the understanding of the parties that the receivables from the Federal Government would be paid into Stallion Account with UBA.
But after delivering the vehicles to the Federal Government, Stallion Motors allegedly directed the government to make the initial payment of $50 million into its Dubai account and also received another N8.2 billion into its offshore account, rather than to its UBA account, as agreed.
UBA alleged that the defendants failed to clear their debts totalling N156 billion.
