General Hydrocarbons has provided more details on its legal dispute with First Bank of Nigeria in connection with some loans obtained by the energy firm from the lender.
“We are in court and arbitration to resolve our differences and have obtained a court order securing our operations pending determination,” the company said in a Friday statement signed by its chairman, Nduka Obaigbena.
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“We hope for a favourable outcome under our system of justice,” the document said.
Mr Obaigbena, Global Hydrocarbons and First Bank have been embroiled in knotty legal conflicts over some credit facilities taken by the company, which the bank claimed has missed a number of repayment deadlines.
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On 30 December 2024, First Bank and FBN Quest Limited, the joint plaintiff in the suit, secured an order from the Federal High Court, Ikoyi, Lagos blocking the accounts and assets the media mogul, his company and his two daughters who hold directorship roles on the board of General Hydrocarbons in all the commercial banks in Nigeria.
The order, granted by Justice Deinde Dipeolu, holds until “the hearing and determination of the motion on notice for interlocutory injunction,” according to a court document obtained by PREMIUM TIMES.
First Bank and FBN Quest are seeking a claim of $225.8 million in all, which it said is the indebtedness on General Hydrocarbons’ account with the lender as of 30 September 2024.
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General Hydrocarbons issued a statement on Thursday through Abiodun Layonu & Co, its solicitors, where it called First Bank’s obtaining of the court orders an “abuse of court process.”
The lawyers drew attention to a previous order granted by Justice A. Lewis-Allagoa of the same court on 12 December 2024, prohibiting First Bank from hindering General Hydrocarbons from taking loan facilities or funding required for the exploration and operation of oil and mining lease (OML) 120.
Both parties had previously entered into a loan agreement requiring the lender to finance the running of OML 120 with an understanding that the two would share any profit from the investment on an equal basis.
General Hydrocarbons alleged that First Bank had variously breached some of the terms of the facility including not disbursing the credit on time.
According to a document seen by PREMIUM TIMES, General Hydrocarbons also obtained an injunction from the judge, restraining First bank from hindering the company from “making any calls or demands, or taking any steps whatsoever to enforce any security, receivables, instrument, finance documents or assets of the applicant which have been charged as security for the facility agreements in respect of the applicant’s operation of OML 120.”
In the Friday statement, General Hydrocarbons remarked that First Bank has persisted in ignoring and disobeying a persisting court judgement and has chosen to mislead the public.
READ ALSO: First Bank, Nduka Obaigbena battle over alleged $225.8 million debt
“We call on our valued partners to remain calm as we work through the courts, arbitration or mediation to seek solutions to our differences in strategy, not in form or substance,” the statement said.
“We willingly rescued First Bank of Nigeria Limited (FBN) from the abyss and are not about to throw away the baby and the bath water.”
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