Court orders receiver to take over BSS Steel Rolling Mills

court.jpg-citynewsA Federal High Court, Lagos has restrained the directors  and  agents of a limited liability company, BSS Steel Rolling Mill Limited, from having access to any sum of money standing to its credit until the sum of N346,798,405,96 plus interest owed by the company to Guaranty Trust Bank is fully liquidated.

The court also restrained the directors and agents of the company from obstructing Mr. Norrison Quakers (SAN), duly appointed by Guaranty Trust Bank from exercising his power and performing his duties as Receiver/Manager over the assets of the company covered by deeds.

The order of the court was sequel to a debt recovery suit filed by Quarkers on behalf of Guaranty Trust Bank, as Receiver /Manager to recover the sum of N346,798,405.95. Between May 11, 2009 and March 2010, the bank allegedly granted various credit facilities to BSS Steel Rolling Mills Limited in the sum of N400million. The loan was accepted by OtunbaAyoolaAbioye as Chief Executive Officer on behalf of the company. The loan was secured by all assets of the company.

However, the firm could not meet up with repayment obligations to the bank and as at January 2012 the indebtedness of the company allegedly stood at N346,798,405.95 while interest continues to accrue.

Consequently, the bank appointed Receiver /Manager over the assets of the company.

In its defence, Abioye alleged that the bank had over charged the company interest which is a subject of litigation at a Lagos High Court. He therefore urged the court to dismiss the suit being an abuse of court process.

But the bank contended that it filed a counter claim to the said suit claiming the same amount of N346,789,405.95.

After appraising the submissions of the two parties the trial judge, Ibrahim Buba declared that the suit has merit and granted all the reliefs asked for by the bank and its Receiver/Manager. He also awarded a cost of N250,000 in their favour.

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