N1bn Debt:Oceanic Seeks Wind Up of Heyden Petroleum
- By Onyewuchi Ojinnaka
- Published June 20th, 2011
- News
- Unrated
Oceanic Bank International Plc is seeking a court order to liquidate Heyden Petroleum Limited for alleged insolvency and inability to pay over N1 billion owed the bank. This is part of efforts by the bank to recover debts, recapitalize and bail itself out from the liquidation threat by the Central Bank of Nigeria.
In a petition filed before a Federal High Court, Lagos, under Sections 401(a), 408(d), 409 and 410 of the Companies and Allied Matters Act (CAMA) 1990, Oceanic Bank (petitioner) contends that it has suffered immense financial loss as a result of Heyden Petroleum’s continued failure to liquidate its debt.
The bank submitted that by letter dated October 25, 2006, it made an offer to the respondent for an import finance facility in the sum of N1billion to finance the importation of petroleum products on short term revolving basis, adding that all the terms and conditions attached to the offer were dully accepted on behalf of the company by its alter ego.
It was also stated that the facility was granted at a negotiated interest rate of 17 per cent per annum, subject to review by the bank in accordance with the prevailing money market rate. The petitioner further stated that Senator Adedapo Abiodun, the respondent’s managing director, personally guaranteed the repayment of the principal sum of N1billion and in that respect.
According to the petitioner, Abiodun failed to redeem the guaranteed sum upon the inability of the respondent to liquidate its indebtedness with the bank. Besides, Heyden Petroleum again applied and was availed a share loan facility in the sum of N112 million for a tenor of 12 months. It was submitted that as a security for the share loan facility, the oil company issued a promissory note to the bank whereupon it guaranteed to pay the principal sum of N112 million immediately a demand is made to that effect. Surprisingly, the respondent failed to honour the aforesaid promissory note.
The petitioner averred that the two facilities were governed by terms and conditions, stressing that the respondent company continued to flout and act in utter disregard of the said terms by failing to put its account in funds, thereby resulting in massive debt burden which it is unable to repay. It further averred that the oil company’s inability to comply with the tenet of the facilities led to the classification of its account as non-performing during the audit of the CBN.
It contends that consequent upon the respondent’s breach of its obligation which led to the blacklisting of the bank by CBN, it (petitioner) served statutory demand on the respondent for the payment of its debt but the oil company failed, neglected and refused to pay.
However, in its affidavit in opposition to the petition, Heyden Petroleum Limited denied being indebted to the bank in the sum of N1 billion. In the said affidavit deposed to by one Paul Aziegbemi, the company secretary/legal adviser, it was stated that though the bank offered the respondent import facility in the sum of N1 billion, but the bank did not at any time release or disburse the said sum to the oil company for its benefit or its offshore trading partners.
It was said that the bank made available to the respondent a sum of N440 million out of the said facility, adding that in the cause of its business transaction with the bank, repaid the sum of N198,889,981.01 leaving a balance of N241,830,511.52. The respondent submitted that Oceanic bank did not disburse or release the sum of N1 billion contained in the offer letter, rather, the letter was provided to capture the maximum credit limit the respondent could enjoy under the import finance facility.
It contended that the petition is clearly intended to harass it and also use same to force a recovery of a disputed sum under winding up proceedings. It urged the court to conduct full inquiry into the amounts outstanding before deciding or determining its indebtedness, praying the court to dismiss the petition in the interest of justice.
In a petition filed before a Federal High Court, Lagos, under Sections 401(a), 408(d), 409 and 410 of the Companies and Allied Matters Act (CAMA) 1990, Oceanic Bank (petitioner) contends that it has suffered immense financial loss as a result of Heyden Petroleum’s continued failure to liquidate its debt.
The bank submitted that by letter dated October 25, 2006, it made an offer to the respondent for an import finance facility in the sum of N1billion to finance the importation of petroleum products on short term revolving basis, adding that all the terms and conditions attached to the offer were dully accepted on behalf of the company by its alter ego.
It was also stated that the facility was granted at a negotiated interest rate of 17 per cent per annum, subject to review by the bank in accordance with the prevailing money market rate. The petitioner further stated that Senator Adedapo Abiodun, the respondent’s managing director, personally guaranteed the repayment of the principal sum of N1billion and in that respect.
According to the petitioner, Abiodun failed to redeem the guaranteed sum upon the inability of the respondent to liquidate its indebtedness with the bank. Besides, Heyden Petroleum again applied and was availed a share loan facility in the sum of N112 million for a tenor of 12 months. It was submitted that as a security for the share loan facility, the oil company issued a promissory note to the bank whereupon it guaranteed to pay the principal sum of N112 million immediately a demand is made to that effect. Surprisingly, the respondent failed to honour the aforesaid promissory note.
The petitioner averred that the two facilities were governed by terms and conditions, stressing that the respondent company continued to flout and act in utter disregard of the said terms by failing to put its account in funds, thereby resulting in massive debt burden which it is unable to repay. It further averred that the oil company’s inability to comply with the tenet of the facilities led to the classification of its account as non-performing during the audit of the CBN.
It contends that consequent upon the respondent’s breach of its obligation which led to the blacklisting of the bank by CBN, it (petitioner) served statutory demand on the respondent for the payment of its debt but the oil company failed, neglected and refused to pay.
However, in its affidavit in opposition to the petition, Heyden Petroleum Limited denied being indebted to the bank in the sum of N1 billion. In the said affidavit deposed to by one Paul Aziegbemi, the company secretary/legal adviser, it was stated that though the bank offered the respondent import facility in the sum of N1 billion, but the bank did not at any time release or disburse the said sum to the oil company for its benefit or its offshore trading partners.
It was said that the bank made available to the respondent a sum of N440 million out of the said facility, adding that in the cause of its business transaction with the bank, repaid the sum of N198,889,981.01 leaving a balance of N241,830,511.52. The respondent submitted that Oceanic bank did not disburse or release the sum of N1 billion contained in the offer letter, rather, the letter was provided to capture the maximum credit limit the respondent could enjoy under the import finance facility.
It contended that the petition is clearly intended to harass it and also use same to force a recovery of a disputed sum under winding up proceedings. It urged the court to conduct full inquiry into the amounts outstanding before deciding or determining its indebtedness, praying the court to dismiss the petition in the interest of justice.
