INNOSON TAKES GTB?

The Head of Corporate Communication at Innoson Motors, Cornel Osigwe, on Friday March 28, tweeted in his handle that his company' has taken over Guaranty Trust Bank over judgement debt of N2.4bn plus 22% interest due.

According to him a Writ of Fifa was obtained from the High Court in Awka to take over in order to recover the judgement debt pending since 2014 at interest rate of 22% all now amounting to N8.8bn due.

He said over the years, GTB had appealed against the judgement given at an Ibadan High Court. It first approached the Court of Appeal which affirmed the lower court judgement then appealed further to the Supreme Court.

According to him, the highest court on the land decided in Innosons favour on February 27, this year thud making both the amount in dispute and interest due automatically payable.

Subsequently, the company approached Awka High Court to obtain a Writ of Fifa on GTB in order to recover the money now due. And so, armed with the Writ the company, in his words has taken over GTB.

It is had to comprehend how this could result in the take over of GTB. Writ of Fifa is normally issued to provide a lien on immovable properties of a debtor who the High Court has certified as being in debt. It is not a writ leads to take over of a company.

Besides, as at December 2018, GTB had properties all over the country worth N111.825bn, according to its audited accounts. Any or all of them could have been attached to writ of fifa  but that will not amount to take over 

Also as at the same December GTB had cash and reserves totalling N676.989bn which may in fact imply that paying N8.8bn may not really be a problem for GTB. So what is going on?

There is also a legal point which may need further clarification by experts. In some countries, writ of Fifa obtained outside the court that issued the judgement debt is not valid. What is the situation in Nigeria?

Attempts to get official response from GTB on the matter on hand was not possible but it is expected that it will issue a formal statement in due course especially as demanded by listing rules of the Nigerian Stock Exchange. 

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