By Onyewuchi Ojinnaka
Justice Nicholas Oweibo of the Federal High Court sitting in Lagos Nigeria has appointed Chief Registrar of the court as provisional liquidator of Chicason Nigeria Limited, a limited liability company in-liquidation.
The court ordered the Chief Registrar to take charge of all the identified/traceable assets, funds of the company in banks and other financial institutions pending the hearing and final determination of the winding up petition filed against the company.
Justice Oweibo made the order following a motion on notice filed by the petitioner and argued before the court, urging the court to appoint provisional liquidator for the company, pending the final determination of the winding up petition filed against the company.
In an affidavit sworn to by a litigation officer Chima Chukwuekwe, it was alleged that the petition was presented to wind up Chicason Nigeria Limited due to its inability to liquidate its admitted huge outstanding indebtedness to the petitioner.
Chicason Nigeria Limited was alleged to have obtained N1,380,000,000 from defunct Intercontinental Bank for the purposes of purchasing machineries and equipment which includes; blow moulding machines, packaging equipment for vegetable oil, soap and detergent lubricants production, conveyor system, tin making and folding equipment amongst other machineries.
In securing the N1,380,000,000 loan, the company pledged amongst others a property located at Plot 3527 Off Osun Crescent, Cadastral Zone, A6 Maitama, Abuja.
In an attempt to register the aforesaid property, search conducted revealed that statutory right over the property had been revoked.
After the disbursement of the huge funds to the company, it became impracticable for the bank to perfect all the securities availed the company.
Thereafter, the respondent in the face of repeated demands failed and variously refused to liquidate the entire huge depositors’ funds as at when due at the evolution of the maturity due date.
Following the company’s un-ending default and having suffered various queries from the regulatory Central Bank of Nigeria at the instance of non-performing toxic loans, moreso, since Intercontinental bank Plc went under as a result of toxic bad debts similar to the instant one, the bank mandated its solicitor to call in the entire indebtedness and issue the requisite statutory demand against the company.
It was alleged further that the company is Insolvent and unable to pay its just and legitimate debts as demanded. Therefore, placing of the company’s assets in the custody of provisional liquidator is to preserve the company’s assets pending the hearing and final determination of the petition to prevent same from being dissipated by the company ‘s Chairman, its Director, as well as agents and privies.
In his ruling, Justice Oweibo granted the prayers of the petitioner by appointing Chief Registrar of Federal High Court as provisional liquidator.