A Nigerian Federal High Court has ordered Keystone Bank to take over Bacita Sugar Company over failure to clear an outstanding N25.5 billion debt.
The development comes as the court also asked to freeze 21 accounts belonging to KIA Africa.
This development followed an order of the Federal High Court, Ilorin, which mandated the bank to recover its debt from KIA Africa Group of Africa, which has acquired Josepdam Sugar Company.
The presiding judge, Justice A. O. Awogboro, ruling on an ex parte motion, asked Keystone Bank to take over the management of all assets of the firm.
“It is hereby declared that in the Notice and Deed of Appointment dated 30” December, 2024, the 2nd Applicant is the duly appointed Receiver/Manager over the assets of the Respondent secured as a fixed and floating charge for the loan facility granted by the 1st Applicant.
“An order of this honourable court is hereby made directing the 2nd applicant, in his role as the appointed receiver/manager under the duly executed debenture deed,
“He is to take possession, control, and management of all assets of the Respondent secured as fixed and floating charges for the loan facility granted by the 15th Applicant.
“An order of this Honourable Court is hereby granted restraining the Respondent herein, whether acting by themselves or through their officers, servants, agents, privies, legal representatives, or such other persons claiming through or acting on their behalf, whosoever and howsoever described, from challenging, interfering with, or otherwise obstructing or frustrating the 2nd Applicant as the Receiver/Manager appointed by the 1st Applicant over all the assets of the respondents lying in any part of Nigeria, including the Respondent’s assets lying and situate at Josepdam Sugar Factory, Bacita Layout, Kwara State.
“An order of this Honourable Court is hereby made directing the Inspector General of Police, Assistant Inspectors General of Police, all Commissioners of Police in any judicial divisions of this Court, including the Commissioner of Police in charge of Kwara State, his deputy, and all other police officers under them and all the sheriffs of this Court in any of the judicial divisions of this Court to assist the 2nd Applicant as the receiver/manager in the enforcement of the orders of this Honourable Court pursuant to the application.
“An order of this Honourable Court is further granted directing (i) First Bank of Nigeria Limited, (ii) Access Bank Plc., (iii) Citibank Nigeria Ltd., (iv) Ecobank Nigeria Pic. (v) Fidelity Bank Ple. (vi) First City Monument Bank Plc. (vii) Guaranty Trust Bank Plc. (viii) Polaris Bank Ltd. (ix) Providus Bank (x) Stanbic IBTC Bank Pic (xi) Standard Chartered Bank Ltd. (xii) Sterling Bank Pic (xiii) Union Bank of Nigeria Plc (xiv) United Bank of Africa Plc (xv) Unity Bank Plc (xvi) Wema Bank Plc (xvii) Zenith Bank Plc (xviil) Globus Bank Ltd. (xix) Heritage Banking Company Ltd. (xx) Suntrust Bank Nigeria Ltd. (xxi) Titan Trust Bank Ltd., to freeze all accounts belonging to the Respondent and that of its alter-ego, Barr. Kenneth Irihiogbe, to depose to verifying affidavit confirming the compliance to the Order of this Honourable Court pending the complete takeover of possession and control of the Respondent’s assets by the 2nd Applicant.”, the Judge said.
The bank has also appointed Mr Yunus Abdulsalam, a Senior Advocate of Nigeria as the receiver/manager of the firm with immediate effect.
DAILY POST recalls that the Central Bank of Nigeria took over Keystone Bank following a court dissolution of its former shareholder, Sigma Golf Nigeria Limited.
The new management of the bank, led by its CEO, Mr. Hassan Imam, has aggressively embarked on a strategic debt recovery drive against recalcitrant obligors.