United Bank for Africa (UBA) has asked Justice Mohammed Liman, presiding over a Federal High Court in Lagos to dismiss a motion filed by a Petroleum Resources firm, Sahara Energy Limited, seeking a discharge of an ex-parte order allowing the bank to advertise a petition it filed to wind-up the firm over alleged N15 billion debt.
Prior to the court’s hearing of arguments on the ex-parte motion, Olanipekun had withdrew another motion filed by him asking the judge to recuse himself from the case. Justice Liman in a bench ruling declared that no other motion would be heard until the motion asking him to withdraw from the case is determined. In an affidavit in support of the petition, UBA disclosed that it granted KEPCO a loan to the tune of $35 million in August 2013, to fund the acquisition of Egbin Power Plant,which Sahara Energy guaranteed. The bank said KEPCO subsequently failed to meet its obligations even after restructuring the loan on two different occasions. The interest on the rescheduled debt is said to have increased the facility to $42,282,430.49 or N15,221,674,976.40 as of December 31, 2018.
UBA added that Sahara Energy was notified several times to fulfill its obligation as a guarantor but had not done so, hence the the need to file a winding up suit. “The company herein is insolvent and unable to pay its debt. In the circumstances, it is just and equitable that the company should be wound up,” the petition read. The petitioner also sought “an order that the company, Sahara Energy Resources Ltd, be wound up by the court under the provisions of Companies and Allied Matters Act.”