A Federal High Court in Nigeria has directed Keystone Bank to take control of Bacita Sugar Company due to the company’s failure to settle an outstanding debt of N25.5 billion.
In addition, the court has ordered the freezing of 21 accounts associated with KIA Africa. This decision follows a previous ruling from the Federal High Court in Ilorin, which instructed the bank to recover its debt from KIA Africa Group, the new owner of Josepdam Sugar Company.
Justice A. O. Awogboro, presiding over the case, granted an ex parte motion allowing Keystone Bank to manage all assets of Bacita Sugar Company.
It is hereby declared that, as stated in the Notice and Deed of Appointment dated December 30, 2024, the 2nd Applicant has been officially appointed as the Receiver/Manager for the assets of the Respondent, which are secured by a fixed and floating charge related to the loan facility provided by the 1st Applicant.
An order from this honorable court is issued, directing the 2nd Applicant, in his capacity as the appointed Receiver/Manager under the duly executed debenture deed, to take possession, control, and management of all assets of the Respondent that are secured by fixed and floating charges for the loan facility granted by the 1st Applicant.
Furthermore, this honorable court grants an order restraining the Respondent, whether acting on their own or through their officers, employees, agents, legal representatives, or any other individuals claiming on their behalf, from challenging, interfering with, or otherwise obstructing the 2nd Applicant in the execution of his duties.
The Honourable Court has issued an order directing the following banks to take action: (i) First Bank of Nigeria Limited, (ii) Access Bank Plc, (iii) Citibank Nigeria Ltd, (iv) Ecobank Nigeria Pic, (v) Fidelity Bank Plc, (vi) First City Monument Bank Plc, (vii) Guaranty Trust Bank Plc, (viii) Polaris Bank Ltd, (ix) Providus Bank, (x) Stanbic IBTC Bank Pic, (xi) Standard Chartered Bank Ltd, (xii) Sterling Bank Pic, (xiii) Union Bank of Nigeria Plc, (xiv) United Bank for Africa Plc, (xv) Unity Bank Plc, (xvi) Wema Bank Plc, (xvii) Zenith Bank Plc, (xviii) Globus Bank Ltd, (xix) Heritage Banking Company Ltd, (xx) Suntrust Bank Nigeria Ltd, and (xxi) Titan Trust Bank Ltd.
These banks are ordered to freeze all accounts belonging to the Respondent and its representative, Barr. Kenneth Irihiogbe. They must also submit a verifying affidavit to confirm compliance with this order, pending the complete takeover of the Respondent’s assets by the 2nd Applicant, the Judge stated.
