Guaranty Trust Bank (GTB) has been given permission by the Federal High Court in Lagos to temporarily assume control of Afex Commodities Exchange’s assets and finances in response to the latter’s N17,808,452,467.107 Central Bank of Nigeria (CBN) Anchor Borrowers’ Loan debt.


The bank applied on May 27 and was granted an interim Global Standing Instruction (GSI) injunctive relief by Justice Chukwujekwu Aneke. After considering an ex-parte motion submitted and moved by the bank’s attorney, Chief A.A. Aribisala (SAN), Ade Adedeji (SAN), together with A.O. Olaleye and M.A. Aribisala, the judge issued the ruling.

The debt consists of “N15,766,475,417.06 as amount outstanding and unpaid, as of April 17, on the loan facilities (with accrued interest) granted by plaintiff to defendant.



“Pre-judgement interest on the N15,766,475,417.06 at prevailing rediscount rate of 28 per cent yearly approved by CBN from April 18 when the plaintiff’s letter of demand dated April 17 was delivered to the defendant until judgment is delivered in this suit.


“Post-judgement interest on the N15,766,475,417.06” and “cost of recovery and incidental expenses in the sum of N2,041,977,050.047,” as revealed.

In the lawsuit FHC/L/CS/911/2024, GTBank is the only applicant or plaintiff; Afex is the defendant/respondent, and 27 commercial banks and money deposit institutions were identified as nominal respondents. In a 285-page affidavit submitted by its representative, Ifeoma Esemudje, the plaintiff said that the facility’s term was nine months, with the aim of financing smallholder farmers who were registered under the CBN Anchor Borrower’s initiative.

Known through banking and finance news, the loan’s maturity date was April 22, 2021, and the repayment was to come from the sale of the produced corn. However, the plaintiff claimed that the defendant broke the agreement.

The plaintiff requested temporary GSI injunctive relief from the court through its legal representatives. Launched in July 2020 by banks and the CBN, GSI gives a creditor bank the right, in the event that the debtor defaults, to recoup its debt from any and all accounts the debtor may have with other financial institutions.

Furthering, before GSI, even though their balances might have paid off their obligation, defaulting borrowers were nonetheless allowed to keep their accounts with other banks.

Recognising GTBank’s request, Judge Aneke directed the first through twenty-eight respondent banks to “Place a No Debit” on funds that were to the credit of Afex on the day the order was served.

SOURCE:https://brandspurng.com/2024/05/30/gtb-to-assume-control-of-afex-over-debt/

A risk remains a risk, irrespective of the outcome.

This could be the begining of acquisition game.

immortalcrown:
A risk remains a risk, irrespective of the outcome.

This could be the begining of acquisition game.

Banks no dey pity for person, where is our money?