Union Bank. |
Federal High Court sitting in Lagos State has adjourned the hearing of an alleged 7 billion naira debt suit filed by Union Bank against Swift Networks.
Justice
Daniel Osiagor fixed May 10, 2024, for hearing of all pending applications,
including possible out-of-court settlement in the suit filed by Union Bank
against Swift Networks Limited over alleged N7,037,410,548.23 debt.
The
date was adjourned for hearing following the inability of Union Bank and Swift
Networks to agree on a mode of settlement.
Kunle
Ogunba (SAN), leading Temilolu Adamolekun, appeared for Union Bank, while Chief
Ajibola Aribisala (SAN) appeared for Swift Networks Limited.
Ogunba
told the court on Monday that Union Bank had done everything possible to resolve
the matter, but the Defendant (Swift) was not amiable to settlement.
He
urged the court to adjourn the matter for a hearing of all pending
applications.
On
his part, Aribisala informed the court that the Defendant is willing to pay its
debt, but the Plaintiff has not agreed to a settlement.
Consequently,
Justice Osiagor urged lawyers to both parties to explore an amicable
settlement.
Recall
that Union Bank (Plaintiff/Applicants) had in a suit FHC/L/CS/1366/2023
stated that
in the course of the bank/customer relationship, Plaintiff agreed to grant
various credit facilities to Defendant for several purposes.
Plaintiff
stated that Defendant failed to meet its repayment obligation(s) to Plaintiff,
but, by its letter of 9th November 2017, it requested that the
Plaintiff/Applicant restructure its debt.
The
Plaintiff granted the Defendant’s Application for a restructure and further
availed it with other credit facilities. Hence, the offer letter of 29th
December 2017.
The
bank stated that Defendant failed to perform its repayment obligation arising
from the offer letter of 29th December 2017.
The
Applicants averred that owing to Defendant’s failure to meet its repayment
obligation, Plaintiff further restructured Defendant’s indebtedness to it by
its offer letter of 28th September 2020.
It
added that “Under the offer letter of 28 September 2020, Plaintiff availed
Defendant with a term loan facility to the tune of N7,674,292,000.00.
“It
is also the clear agreement of parties that the source of repayment shall be
from the cash flow from Defendant’s business operation and other cash flow
sources available to Defendant.
“To
Plaintiff’s bewilderment, the facilities matured without the expected
receivables as Defendant failed to meet its repayment obligation to Plaintiff
under the offer letter of 28th September 2020, which was duly accepted by
Defendant.
“It
is also the clear agreement of parties that any breach of the terms of the
offer letter shall constitute a default and that the entire indebtedness of the
Defendant shall immediately become due and payable upon such default.”
Culled from Daily Global.
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