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AMCON gets Court Order to Recover N478M from Contractor for Keystone Bank Debt.
AMCON gets Court Order to Recover N478M from Contractor for Keystone Bank Debt.
In a recent development, the Federal High Court in Abuja issued a ruling directing the Asset Management Corporation of Nigeria (AMCON) to recover the sum of ₦478 million from Perfect Aims Global Engineering Limited and other entities for their failure to settle outstanding debts owed to Keystone Bank (formerly known as Platinum Habib Bank Plc) since September 2016.
Justice Inyang Ekwo, presiding over Suit No. FHC/ABJ/AMC/50/2022, delivered the judgment on March 7, siding with AMCON in their pursuit of debt recovery from the defendants. The court found that the defendants, engaged in the business of road rehabilitation and construction, had neglected their financial obligations under the loan agreement with the bank, which included a 20% annual interest rate.
Barrister Olatunji Muritala, representing AMCON, argued that the defendants had received multiple contract finance facilities over time, leading to the accumulation of a N478 million debt. Despite repeated demands for repayment, the defendants failed to honor their obligations, opting instead to engage in deceptive practices that misled the bank.
Muritala emphasized, “The defendants’ actions not only resulted in prolonged litigation but also involved leveraging a property whose whereabouts remain undisclosed, further complicating the debt recovery process.”
The court highlighted the defendants’ failure to present a legal defense against the allegations, indicating their acquiescence to AMCON’s claims. Justice Ekwo underscored the legal consequences of failing to respond to the lawsuit, affirming AMCON’s case based on the evidence presented.
Providing additional context, records from Nairametrics reveal that Perfect Aims Global Engineering Limited and its director were former clients of Platinum Habib Bank, receiving substantial contract finance facilities starting at N130 million. The company’s directors formally accepted the terms of the financing arrangement in a memorandum dated August 15, 2008.
Following the bank’s inability to recover the outstanding loan, the rights and interests associated with the debt were transferred to AMCON through a Loan Purchase and Limited Servicing Agreement. As part of its mandate to recover non-performing loans, AMCON initiated legal proceedings against the engineering firm to address the unresolved financial liabilities.
The court’s ruling underscores the importance of fulfilling financial obligations and upholding contractual agreements in the business landscape. It serves as a reminder of the legal ramifications that can arise from defaulting on loan repayments and the significance of transparent and ethical conduct in financial transactions.
This case highlights the vital role that organizations such as AMCON play in preserving the stability of the financial industry and requiring borrowers to be accountable. The ruling represents a significant advancement in the resolution of the outstanding debt problem and the preservation of the ethical standards of lending within the Nigerian financial sector.
When financial industry participants consider this development, it emphasizes how important it is to manage finances responsibly, follow contracts, and understand the repercussions of breaking loan agreements. The outcome of this case serves as a cautionary tale for businesses and individuals alike, emphasizing the importance of financial discipline and integrity in all financial dealings.
