United Bank For Africa (UBA) Sues Energy Firm And Polaris Bank Over $6.759m.

A Federal High Court sitting in Lagos has restrained Integrated
Energy Distribution and Marketing Company Ltd and Polaris Bank from
tampering, howsoever, with funds standing to their credit up to
$6,759,000 or it’s equivalent in any currency in 25 banks, the Debt
Management Office and Federal Ministry of Finance.

Justice Daniel Osiaigor, who made the interim order of Mareva
Injunction, held that it subsists pending the hearing and
determination of a motion on notice filed against the duo by the
United Bank for Africa (UBA).

The July 2 order followed UBA’s June 29 Application filed and
argued by its counsel Temilolu Adamolekun who appeared with Gbenga
Akinde-Peters supported by an affidavit sworn to by Anike Isinguzo
and Exhibits attached. 

Integrated Energy Distribution and Marketing Company Ltd and
Polaris Bank are the 1st and 2nd respondents in the suit number
FHC/L/CS/714/21.

The 3rd to 26th respondents are Access Bank plc), (Citibank
Nigeria ltd), (Diamond Bank Plc), (Ecobank Nigeria ltd),
(Enterprise Bank ltd.), (Fidelity Bank Plc.),( First bank of
Nigeria plc.), (First City Monument Bank Plc), (Globus Bank
Limited), (Guaranty Trust Bank Plc), (Heritage Bank Plc.), (Jaiz
Bank Limited), (Keystone Bank Limited), (Polaris Bank limited),
(Providus Bank Limited), (Stanbic IBTC Bank Nigeria Itd.),
(Standard Chartered Bank Ltd.) (Sterling Bank Plc.), (SunTrust Bank
Nigeria Limited). (Titan Trust Bank Limited), (Union Bank Plc),
(Unity Bank Plc.). (Wema Bank Plc.) and (Zenith Bank Plc).

The 28th and 29th respondents are the DMO and Finance
Ministry. 

The court further restrained the 3rd to 26th Respondents or
their agents from releasing the sum to the Defendants.

The order also restrained the 1st Defendant from dealing with
any of the monies standing to its credit in all of its accounts, or
any money in which it has any interest held on its behalf with the
27th to 29th Respondents up to $6,759,000 or it’s equivalent.

The court restrained the 2nd Defendant from dealing with any of
the monies, instruments, Sovereign Debt Notes, Promissory Notes,
Treasury Bills or any other instrument in which it has an interest
or standing with the 27th, 28th, and 29th Respondents, to the tune
of $6,759,000 or its equivalent.

It forbade the 27th, 28th and 29th Respondents (CBN, Debt
Management Office, and the Federal Ministry of Finance) from
releasing any monies or funds belonging to the 2nd Defendant or
wherein the 2nd Defendant has an interest up the $6,759,000 or its
equivalent.

The judge further directed the 3rd to 29th Respondents to
disclose on oath the total sum of money or funds in their custody
belonging to any of the Defendants.

The plaintiff had averred in its affidavit that the energy firm
won the bid to acquire 60 per cent stake/of the shares in the
Ibadan and Yola Electricity Distribution Companies following the
privatisation exercise of the Power Holding Company of Nigeria
(PHCN) Assets sometime in 2013.

It applied to and received a $162,400,000 syndicated loan from
the plaintiff, the 2nd Defendant (formerly Skye Bank Plc), Diamond
Bank Plc now Access Bank Plc, First City Monument Bank Ltd,
Heritage Bank Plc and Keystone Bank Ltd (jointly referred to as the
lenders).

The lenders also agreed to the appointment of the 2nd Defendant
as the Facility Agent in respect of the facility to, among others,
ensuring the repayment of the loan. 

The Plaintiff accordingly disbursed the sum of $35million to the
1st Defendant to enable it meet the purpose(s) for which it needed
the pooled funds.

The energy firm was unable to conclude the transaction on Yola
Electricity Distribution Company (Yola Disco), owing to the
insurgency in Northeast and it invoked the force majeure protection
clause enshrined in the Agreements and demanded a refund of the
invested sum from the Federal Government.

Sometime in March, 2020, the Federal Government paid the final
installments of the refund (recovered sum) to the energy firm and
Polaris Bank. 

“However, the remaining tranche of the Plaintiff’s share of the
said recovered sum has since been withheld by the Defendants,
particularly the 2nd Defendant,” UBA told the judge.

The court adjourned till July 13, for hearing of the motion on
notice.

A Federal High Court sitting in Lagos has restrained Integrated
Energy Distribution and Marketing Company Ltd and Polaris Bank from
tampering, howsoever, with funds standing to their credit up to
$6,759,000 or it’s equivalent in any currency in 25 banks, the Debt
Management Office and Federal Ministry of Finance.

Justice Daniel Osiaigor, who made the interim order of Mareva
Injunction, held that it subsists pending the hearing and
determination of a motion on notice filed against the duo by the
United Bank for Africa (UBA).

The July 2 order followed UBA’s June 29 Application filed and
argued by its counsel Temilolu Adamolekun who appeared with Gbenga
Akinde-Peters supported by an affidavit sworn to by Anike Isinguzo
and Exhibits attached. 

Integrated Energy Distribution and Marketing Company Ltd and
Polaris Bank are the 1st and 2nd respondents in the suit number
FHC/L/CS/714/21.

The 3rd to 26th respondents are Access Bank plc), (Citibank
Nigeria ltd), (Diamond Bank Plc), (Ecobank Nigeria ltd),
(Enterprise Bank ltd.), (Fidelity Bank Plc.),( First bank of
Nigeria plc.), (First City Monument Bank Plc), (Globus Bank
Limited), (Guaranty Trust Bank Plc), (Heritage Bank Plc.), (Jaiz
Bank Limited), (Keystone Bank Limited), (Polaris Bank limited),
(Providus Bank Limited), (Stanbic IBTC Bank Nigeria Itd.),
(Standard Chartered Bank Ltd.) (Sterling Bank Plc.), (SunTrust Bank
Nigeria Limited). (Titan Trust Bank Limited), (Union Bank Plc),
(Unity Bank Plc.). (Wema Bank Plc.) and (Zenith Bank Plc).

The 28th and 29th respondents are the DMO and Finance
Ministry. 

The court further restrained the 3rd to 26th Respondents or
their agents from releasing the sum to the Defendants.

The order also restrained the 1st Defendant from dealing with
any of the monies standing to its credit in all of its accounts, or
any money in which it has any interest held on its behalf with the
27th to 29th Respondents up to $6,759,000 or it’s equivalent.

The court restrained the 2nd Defendant from dealing with any of
the monies, instruments, Sovereign Debt Notes, Promissory Notes,
Treasury Bills or any other instrument in which it has an interest
or standing with the 27th, 28th, and 29th Respondents, to the tune
of $6,759,000 or its equivalent.

It forbade the 27th, 28th and 29th Respondents (CBN, Debt
Management Office, and the Federal Ministry of Finance) from
releasing any monies or funds belonging to the 2nd Defendant or
wherein the 2nd Defendant has an interest up the $6,759,000 or its
equivalent.

The judge further directed the 3rd to 29th Respondents to
disclose on oath the total sum of money or funds in their custody
belonging to any of the Defendants.

The plaintiff had averred in its affidavit that the energy firm
won the bid to acquire 60 per cent stake/of the shares in the
Ibadan and Yola Electricity Distribution Companies following the
privatisation exercise of the Power Holding Company of Nigeria
(PHCN) Assets sometime in 2013.

It applied to and received a $162,400,000 syndicated loan from
the plaintiff, the 2nd Defendant (formerly Skye Bank Plc), Diamond
Bank Plc now Access Bank Plc, First City Monument Bank Ltd,
Heritage Bank Plc and Keystone Bank Ltd (jointly referred to as the
lenders).

The lenders also agreed to the appointment of the 2nd Defendant
as the Facility Agent in respect of the facility to, among others,
ensuring the repayment of the loan. 

The Plaintiff accordingly disbursed the sum of $35million to the
1st Defendant to enable it meet the purpose(s) for which it needed
the pooled funds.

The energy firm was unable to conclude the transaction on Yola
Electricity Distribution Company (Yola Disco), owing to the
insurgency in Northeast and it invoked the force majeure protection
clause enshrined in the Agreements and demanded a refund of the
invested sum from the Federal Government.

Sometime in March, 2020, the Federal Government paid the final
installments of the refund (recovered sum) to the energy firm and
Polaris Bank. 

“However, the remaining tranche of the Plaintiff’s share of the
said recovered sum has since been withheld by the Defendants,
particularly the 2nd Defendant,” UBA told the judge.

The court adjourned till July 13, for hearing of the motion on
notice.