AMCON drags SCINTILLA company boss to court over unpaid N467million debt.
Posted By Town Crier News Nigeria
Published By Fitness Network Communications
Assets management Corporation of Nigeria AMCON has dragged a Lagos business man Mike Chukwu alongside his company Scintilla Limited company before a Federal high court sitting in Lagos south west Nigeria,over alleged failure to repay a loan of N467,329,810.95.
Joined as co-defendants in the debt recovery suit are, Scintilla Limited company that operates in the Entertainment and events industry with it’s registered office at Eleganza Bus stop kilometer 20,Lekki Epe Expressway Lagos State, Qualiti Aqua Products Limited with it’s registered office at number 11 Onibese street,Ikorodu,Lagos state,a sister company to Scintilla company who was at all times relevant to this case a guarantor to the loan facility granted the Scintilla company.
The 4th Defendant is an Incorporated Trustees of Salvation Ministries registered in Nigeria with its Head quarters at Plot 17, Birabi Street GRA Phase 2 Port Harcourt Rivers State Nigeria, and her numerous Satellite Churches for the purpose of spreading the gospel globally.
In an amended statement of claim accompanied with written statement on oath sworn to by enforcement officer of AMCON Mr.Hakeem Shitta-Osho and filed before the court by the law firm of Revelation Partners,the Deponent avers that by an Offer Letter dated July 9, 2010, Access Bank Plc availed the Scintilla Company a loan facility of
N180,000,000.00 named Facility Type 1,
N25,000,000.00 named Facility Type 2,
N20,000,000.00 named Facility Type 3, and N30,000,000.00 name Facility Type 4, under certain terms and conditions.
The purpose of this loan was to finance the Construction, Installation of fixtures and acquisition of equipments and capital for “SCINTILLA ARENA” a Multi-use entertainment centre and recreational facility at Eleganza bus stop, KM 20, Lekki-EPE Expressway, Lekki, Lagos State.
The above mentioned loan was for a tenure of Two (2) years for Type 1, One (1) year for Type 2, one (1) year for
Type 3, and three (3) years for Type 4, all at interest rate of 17%per annum subject to review in line with prevailing market conditions.
The loan was secured with all the Assets of the Scintilla company covered by a Deed of All Assets Debenture executed by the company in favour of Access bank Plc dated September 8, 2010
The loan was also secured by Properties situate and known as Block 1, Plots PFS, & Block 1A, Plots 26 & 27, Ojumu Family Layout, Poroku Village, Lekki Pennisula, Lagos State covered by a Deed of Tripartite legal Mortgage executed by the Quality Aqua Products company in Favour of Access Bank Plc.
The Plaintiff avers that the loan facility was as well secured by a
Personal Guarantee form executed by Mike Chukwu a Director/alter Ego of Scintilla company whose address is at J-29,Road 3, Victoria Garden City,Lagos State in favour of Access Bank Plc. The said Personal Guarantee form shall be relied on during trial of the case.
The Defendants with exception of Incorporation Trustees of Salvation Ministries accepted this loan and same was disbursed and utilized by the Defendants.
The Scintilla Company in consideration of the facility granted above, wrote a letter headed Irrevocable and unconditional letter of Domiciliation of Proceeds dated July 15, 2010 to Access Bank Plc.
The Plaintiff avers that the defendants with the exception of Incorporated Trustees of Salvation Ministries drew down on the facilities referred to above but neglected to liquidate it’s indebtedness to Access Bank Plc when the loan became due and payable.
The Plaintiff advised the Defendants to repay the outstanding sum owed, failing which immediate steps will be taken to pursue full recovery of the outstanding sum owed by the Defendants.
AMCON avers that despite all the opportunities availed the three defendants that drew down the loan they failed, refused and neglected to redeem their indebtedness to the Plaintiff.
AMCON Instructed its Solicitors, Revelation Partners of No
12 Abisogun Street, Off Oniru Palace Road, Victoria Island Lagos State to realize the properties used in securing the said debt with a view to recover the outstanding sum due to it from the Defendant.
Due to accruing interest, charges of the indebtedness of the three defendants as at October 6, 2016 has risen to the sum of N492,346,065,80
On the 23rd day of March 2017, the plaintiff via motion Ex-parte prayed the court for an interim possession of the assets or property used as security for the loan granted to the Defendants, and same was granted on the 9th day of May 2017. Trial subsequently started before Justice Babs Kuewumi.
Several meetings were held upon her request to see if the matter can be resolved outside the court, because the defendant kept on saying that he has one buyer or another, which never showed up. There were times the three defendants never showed up at the scheduled meetings.
Consequently when it was time for the three defendants to open their case, the defendants never showed up in court, the court kept on adjourning several times until Hon. Justice Babs Kuewumi was transferred to another division of the court.
After the three Defendants refused to pay the loan facilities, the Incorporated Trustees of Salvation Ministries who was a sitting tenant on the Property via its Solicitor’s letter dated June 8th, 2016 indicated interest to purchase the Property known as Scintilla World situated at Eleganza Bus Stop, KM 20, Lekki Epe Expressway, Ojomu Chieftaincy Family Layout, Poroku Village, Lekki Lagos State.
AMCON exercised her Power of sale on the Deed of Tripartite legal mortgage executed by the Mike Chukwu as security to obtain the several loan facilities since it was apparent that the three Defendants were not ready to offset the loan.
AMCON is yet to recover the full sum owed by the three Defendants upon the sale of the SCINTILLA PROPERTY used as security.
The Plaintiff further avers that the sum gotten from the sale of the SCINTILLA PROPERTY was not enough to offset the loan, knowing as a matter of fact that interest on the said facilities had accrued and is still accruing and same remains unpaid till date.
AMCON traced and located some assets of the Mike Chukwu situated at Block1, Plots PFS, & Block 1A, Plot 26 and 27 on Ojomu Chieftaincy Family layout, Poroku Village, Lekki Peninsula, Lagos State.
AMCON also traced and located Mike Chukwu’s Property situated at plot 29, Road 3, Victoria Garden City Ajah Lagos State. Mike Chukwu is hereby issued notice to produce the title Documents in respect of the property situated at Victoria Garden City Lagos State.
AMCON further instructed its solicitor REVELATION PARTNERS of No 12B Abisogun Street, Off Oniru Palace Road, Victoria Island Lagos State to take possessions of these traced properties, since it is obvious that the three Defendants are unwilling to pay up the outstanding balance.
On the 31st day of August, 2017, when the mortgaged was sold to the Incorporated Trustees of Salvation Ministries, the three defendants were indebted to AMCON N917,752,031.27 and the debt was therefore reduced to the tune of N461,292,161.52 with interest still accruing.
Due to the interest charges on the indebtedness of the defendants as at the 31st day of May 2022, the indebtedness of the three Defendants has further risen to the sum of N467,329,810.95 with interest still accruing.
Consequently, the AMCON claims against the three Defendants are as follows:
The sum of N467,329,810.95 being the outstanding sum and due to the Plaintiff from the three Defendants on various facilities granted to the three Defendant by Access Bank as at 31st May, 2022 which the three Defendants have refused to pay with interest still accruing till date.
An order of Court foreclosing the rights of the Qualiti Aqua Products Limited to the properties known and situate and Being at Block 1, Plot PFS, and Block 1A, Plot 26 and 27 on Ojumu Chieftaincy Family Layout, Poruku Village, Lekki Pennisula, Eti-Osa Local Government Area, Lagos State covered by Deed of
Tripartite Legal Mortgage executed by the company as security to obtain the loan facility.
3. An order of the Court foreclosing the rights of Mike Chukwu to the Property situate at Plot J-29, Road 3, Victoria Garden City covered by the Personal Guarantee form executed by Mike Chukwu as security to obtain the loan facility.
Meanwhile,the presiding Judge Tijani Ringim has adjourned till 23rd of March ,2023 for hearing.