Stella Okoli, Nigeria’s leading industrialist and Chief Executive Officer of Emzor Pharmaceuticals Industries Limited, is currently in a financial mess over alleged multi billion Naira loans obtained from banks.
One of the banks, Nova Merchant Bank Limited has filed a winding-up petition before a Federal High Court sitting in Lagos, against, Emzor Pharmaceutical Industries seeking to recover a loan of N6.205 billion granted the firm.
The suit marked: FHC/L/CP/1044/2024 has been assigned to Justice Chukwujekwu Aneke.
Listed as respondents in the suit are: Central Securities Clearing System Plc, Access Bank Plc, Ecobank Nigeria Limited, Citi Bank Plc, Fidelity Bank Plc, First City Monument Bank Plc, First Bank of Nigeria Limited.
Others are: Guaranty Trust Bank Plc, Jaiz Bank Plc, Keystone Bank Ltd, Polaris Bank Plc, Providus Bank Plc Stanbic Ibtc Bank Plc, Sterling Bank Plc, Standard Chartered Bank Plc, Union Bank of Nigeria Plc, United Bank For Africa Plc, TAJ Bank Limited, WEMA Bank Plc, and Zenith Bank Plc.
In a Motion on Notice filed by counsel to the bank, Mr. Oluwakemi Balogun SAN, he stated that the petitioner has issued on the respondent, the statutory three weeks demand notice required by Section 572 of the Companies and Allied Matters Act (CAMA) 2020.
He stated said three weeks demand notice had since elapsed, yet the respondent has neglected to pay or to secure or compound for same to the reasonable satisfaction of the Petitioner.
Balogun stated that the respondent is unable to liquidate its indebtedness, by virtue of Section 574(1) of the Companies and Allied Matters Act (CAMA), Section 6(6) of the Constitution of the Federal Republic of Nigeria, 1999 as amended, Rule 183 of the Companies Winding-Up Rules, 2001, and by JB Order 30 of the Federal High Court (Civil Procedure) Rules, 2019.
He stated that substantially the whole of the assets of the respondent are personal in nature and are liable to be dissipated, removed, destroyed, and or otherwise evaporated by the alter egos of the Respondent unless a restraining order is granted to prevent the res from being dissipated.
In an affidavit deposed in support of motion on notice deposed to by Azeezat Adeniji, a Principal Officer in the employment of Nova Merchant Bank, the deponent stated that upon an application by Emzor Pharmaceuticals Industries Limited, the Petitioner by an offer letter dated 25th April, 2022 with reference number NVB/22/CBG/APRIL/05/004, granted a 2 type credit facility to Emzor Pharmaceuticals Industries Limited.
The Facility Type 1 is in the sum of $4,583,333.00 (Four Million, Five Hundred and Ejighty-Three Thousand, Three Hundred and ThirtyThree United States Dollars Only) to finance importation of various raw materials while the Facility for the Facility Type 2 is in the sum of N500,000,000.00 (Five Hundred Million Naira Only) to augment working capital requirement of the company.
She stated that the securities for the Facilities are: (a) All Asset Debenture over fixed and floating Asset of the Respondent to be shared pari-pasu with other lenders. (Facility Type 1&2), and (b) Personal Guarantee of Stella Okoli (Facility Type 2 only).
The deponent added that by a Board Resolution passed on the 6th day of April, 2022, the respondent at its Board of Directors Meeting approved, authorized and appointed the Managing Director, Dr. Mrs. Stella Okoli and Executive Director, Mrs. Uzoma Ezeoke to execute the offer letter of the Petitioner dated 5th April, 2022 for the 2 type credit facility in the sum of $4,583,333.00, and N500,000,000.00 respectively.
The Mortgage Debenture Trust Deed entered into by parties and being managed by UTL Trust Management Services Limited and Coronation Trustees Limited was duly executed on the 1% of December, 2022. Annexed and marked as Exhibit NMB 3 is a copy of the Mortgage Debenture Trust Deed dated 1st of December, 2022.
Further to the above and as security for the facility, the Personal Guarantee of the Respondent’s Managing Director, Dr. Mrs. Stella Okoli was duly executed and notarized on the 13th of April, 2022.
By virtue of the clause titled “other conditions” in the offer letter of 5th April, 2022, the Respondent in paragraph 8 covenanted with the Petitioner that “all sums outstanding in Emzor Pharmaceutical Industries Limited accounts pursuant to the above shall become immediately payable upon the Bank’s first demand and interest shall accrue thereon at the Bank’s ruling rate for unauthorized facilities until the outstanding sums are fully liquidated”.
