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N346m debt: GTB appeals vacation of court order


Guaranty Trust Bank, GTB, has appealed the ruling of a Federal High Court, Lagos, vacating the order of the court preserving the assets of a company indebted to it, for which it had appointed a Receiver manager, pending the final determination of the suit.

The bank in the N346 million debt recovery suit against a Lagos businessman, Otunba Ayoola Abioye and his company, BSS Steel Rolling Mills Limited, is also praying the court to restrain Abioye or his privies from taking advantage of the ruling of the court by taking steps that will prejudice the right of the bank to approach the Court of Appeal to hear and determine the appeal already lodged at the appellate court for adjudication.

The bank official, Soga Adewale in an affidavit in support of the application, averred that  by offer letters dated May 11, 2009, June 30, 2009 and  March 2, 2010, GTB at the request of Abioye, the bank granted various loan facilities totaling N400 million for the importation of iron rods into the country, while the tenor for the repayment of all the facilities was two years inclusive three months’ moratorium.

The loan facilities were secured by an all assets Deed of Debenture over all the fixed and floating assets of BSS steal rolling mills limited and Tripartite legal mortgage on Property located at 25 Sehinde Crescent Oshodi, Lagos State owned by Ayoola Abioye, who is the Vice Chairman of the BSS company.
Other security for the loan included Tripartite legal mortgage over a five bedroom duplex located at 24C, Victoria Garden City, Victoria Island, Lagos State, Tripartite legal mortgage over a property owned by one Samuel Ariyo situated at 191 Igbosere Road Lagos and personal Guaranty of Otunba Abioye for the full facilities and accrued interest thereof.


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