General Hydrocarbons Limited (GHL) has approached the Federal High Court in Lagos, requesting the discharge of an order freezing its assets and accounts.
The freezing order, initially granted to recover an alleged $225.8 million loan, was obtained on grounds of fraudulent misrepresentation and concealment of material facts, according to the plaintiffs.
On December 30, 2024, Justice Deinde Dipeolu issued an ex-parte order restricting commercial banks from releasing or managing any assets or funds belonging to GHL, its subsidiaries, or related entities, up to the disputed amount.
The order extended to GHL Directors Nduka Obaigbena, Efe Damilola Obaigbena, and Olabisi Eka Obaigbena, alongside various affiliated companies and entities, including Vitol SA, Mercuria Energy Trading SA, Schlumberger, and Baker Hughes.
Representing GHL, Senior Advocate of Nigeria (SAN) Abiodun Layonu argued that the case filed by First Bank of Nigeria (FBN) constitutes an abuse of court processes.
He highlighted a prior order by Justice Ambrose Lewis-Allagoa, which restrained FBN from recovering the loan until the matter was resolved through arbitration. Layonu maintained that the freezing order had been granted based on misleading claims and had caused significant financial harm to GHL.
Similarly, Olumide Aju, SAN, representing other defendants, argued that FBN failed to disclose the existence of the earlier restraining order when obtaining the Mareva injunction. He emphasized that arbitration proceedings on the alleged loan are ongoing, making the Mareva order unnecessary and unjust.
Aju also pointed out that the injunction was issued without evidence of any diversion of funds and unfairly targeted shareholders and directors who had not personally guaranteed the loan.
Victor Ogude, SAN, representing First Bank, insisted that the bank disclosed all relevant facts in its affidavit and acted within its legal rights. He argued that the parties and agreements in the earlier case before Justice Lewis-Allagoa differ from those in the current matter.
Ogude emphasized that the bank’s constitutional right to seek judicial redress remains intact and urged the court to dismiss GHL’s suit as baseless.
After hearing both sides, Justice Deinde Dipeolu reserved the ruling on GHL’s application for a later date, to be communicated to the parties involved.
This high-stakes legal battle underscores the complexities of corporate loan disputes and highlights the critical role of arbitration and court interventions in resolving such conflicts. As both parties await the court’s ruling, the outcome could set a precedent for handling similar cases in the oil and gas sector.
Be the first to comment