Debt recovery suit: Sterling bank drags former Omega bank MD to court

Former Managing Director (MD) of the defunct Omega Bank Plc, Reverend Segun Agbetuyi, has been dragged before a Federal High Court sitting in Ikoyi, Lagos over alleged non-redemption of N232,252,173.99 debt.‬

Other defendants in the debt recovery action includes: Consecrated Farms Limited, situates at 14B, Danny Estate, Makoko, Yaba, owned by Rev. Agbetuyi, and the Permanent Secretary, Bureau of Land, Lagos State Ministry of Lands, as first and third defendants.

The financial institution in its statement of claim before Justice Mohammed Yunusa, and filed by its lawyer, Dada Awosika wants the court to issue an order directing Reverend Agbetuyi to pay the sum of N232,252,173.99, which represents the outstanding balance on his company's account with the bank as at May 21, 2014.‬

Sterling bank is equally asking the court for a judicial order to liquidate the defendants debt by selling  Consecrated Farms Limited, located at 14b, Danny Estate, Makoko, Lagos; and four numbers of three bedroom detached bungalows, located at Adebimpe Akinwunmi/Adekitan Oshikoya street, Ori-okuta palace, Owutu-Agric, Ikorodu, which is covered by Certificate of Occupancy dated May 5, 2006, and registered in number 2, page 2, Volume 2006F of the lands registry.

The financial institution is also praying the court for an order that proceeds realised from the sales  be applied in part or full satisfaction of the indebtedness of Reverend Agbetuyi, and his company, Consecrated Farms Limited. And to direct  the Permanent Secretary, Bureau of Land to forthwith regularise the Title Documents in its custody.

The bank which is making a demand that the court should award a total sum of  N10 million, being legal fees for prosecuting the suit, stated that between 2007 and 2008, Consecrated Farms Limited applied for and was granted and utilised multiple credit facilities of N300 million by its compromising of N150 million, term loan, N125 million overdraft, and N25 million import finance facilities.‬

Sterling bank further alleged that both Rev. Agbetuyi and his farm fully repaid the N150 million term loan sometimes in 2008, while the overdraft and import finance facilities were as at September 2010, remained unpaid, with the  Consecrated Farms Limited account being irregular without meeting the repayment obligation of the terms and conditions of the facility.‬

The bank added that by its letter dated September 22, 2010, requested both the Farms and Agbetuyi to signify intention to renew the overdraft  and import finance facilities of about N150 million, otherwise the facilities be liquidated, and upon  application for the renewal of the credit facilities, by its letter dated January 27, 2011, granted the defendants' request for renewal and restructuring of the multiple credit facility at an interest of 18 percent, with the security being the property and personal guarantee already donated to the bank.

The financial institution argued that despite the extension granted to the defendants in April, 2013, for 90 days to liquidate the overdraft and import finance facilities, the  defendant account continued to be irregular with no substantial lodgement, with an addition that the bank's several letters to  the defendants for regularisation was of no avail.

In his statement of defence, Reverend Agbetuyi through his lawyer, Professor Bayo Osipitan (SAN),  argued that he was not properly served, and he got to know about the suit through a third party.

The clergy then prayed the judge to discontinuance and dismiss the suit. The matter has been adjourned till December 19, 2014.