N32bn Debt: Innoson To Stop GTB From Deregistering As Public Liability Company

Nigeria’s indigenous automobile firm, Innoson Manufacturing Ltd has commenced moves to stop Guaranty Trust Bank Plc from deregistering as a ‘Public Liability company’ over N32.8bn outstanding judgment debt.

The local manufacturer said in a document on Monday that it, “seeks an order restraining GTB from transmuting to a Private and a Financial Holding Company until GTB pays it over N32bn Judgement debt.”

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The tier one bank had lost a suit against the company at the Federal High Court, Awka Division on March 27th, 2019.

The manufacturer also disclosed that the Supreme Court of Nigeria has equally struck out GT Bank’s motion filed to set aside its earlier decision made on 27th February 2019 dismissing GTB’s appeal against Court of Appeal judgement of 6th February 2014 in favour of Innoson Nigeria Ltd.

Innoson said as it started the execution of the judgement to recover the N32.87bn, GTB rushed to the court vide its desperate motion on notice.

The motion on notice is seeking orders suspending the execution embarked by Innoson Nigeria Ltd and also seeking orders setting aside the ex-parte Orders made by the Court granting Innoson leave to enforce the judgment.

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The automobile company revealed that the Court refused GTB’s application and stayed further proceedings.

It said the Court further held that the order it made on March 27th, 2019 in favour of Innoson Nigeria Ltd granting it leave to enforce the judgment and issue processes of execution of the judgment are valid.

Also the court held that all the steps taken to levy executions in pursuance of that order are still valid and are not vacated; whilst all the prayers by GTB in its motion of 1st April 2019 are not granted.

Innoson noted that while it waited for the bank to come up with a payment plan for it’s over N32.87bn judgement debt, GTB resorted to a scheme of de-registering itself as a public limited liability company and re-registering itself as a Private Liability Company and a financial holding company as well.

Consequently the automobile manufacturer said it has sued GTB at the Federal High Court, a move that will suspend the bank’s move to deregister as a PLC.

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