Unpaid N368m debt: Bank drags 2 coys to court

Sterling Bank Plc has dragged two limited liability companies, Gem Global Market Limited, and Treasure Capital and Trust Limited, before Justice Saliu Saidu of a Lagos Federal High Court, over unpaid N367, 903,489.93 million debt.
Sterling Bank in its affidavit in support of the suit deposed to by its Debt Recovery manager, Mr. Segun Babatunde, averred that the two companies appointed the bank as their settlement bank for their security dealings and trading transactions, and Gem Global Market Limited in a letter dated June 30, 2011, intimated the bank with its desire and request that all its outstanding and going bond market transactions be settled through Treasure Capital and Trust Limited account, and that the bond purchase and sale on behalf of the company would be made by Gem Global Market Limited.
Babatunde also averred that the defendants through Gem Global Market Limited made an application to Sterling Bank sometime in July 2013 for credit facility to purchase a federal government bond (REPO Trades Transaction of N1, 518, 472, 602.74), and the facility was granted and the bond purchased, and transaction consummated on July 25, 2013, with a maturity/settlement dated of October 21, 2013, it was agreed that the facility shall attract interest rate at the Central Bank of Nigeria’s prime leading rate.
However upon the maturity date, October 21, 2013, the defendants failed to fund their accounts or disposed of the bond.
‪The deponent further stated that he knew as a fact that by its bond sale instruction’s letter dated October 30, 2013, to the bank, the two companies working in tandem with each other directed the bank to dispose of the bond at the prevailing market rate, and that the transaction be settled through the first defendant’s account.
He stated further that on December 2, 2013, the bank sold the bond in line with the instruction of the defendants, and on the same day credited the first defendant’s account with the proceeds as the bond was eventually sold at N1, 3336,343, 409. 59 million, leaving a shortfall to be paid by the defendants to liquidate the credit facility granted. On 2nd of December 2, 2013, the first defendant’s account was debited with the bond purchase transaction and also properly valued to the original settlement date of October, 2013.‬
Babatunde averred further that as at July 14, 2014, the total sum due and payable to the bank from the defendants stood at N367, 903,489.93 million, and that series of letter have been written to the defendants to liquidate their indebtedness but to no avail. He stated that the first defendant’s letter dated April 22, 2014, did not dispute the indebtedness but prayed for time to liquidate the said indebtedness.