Albert Okumagba battles First Bank to avert bankruptcy

Albert Okumagba battles First Bank to avert bankruptcy

Wednesday, September 9, 2015 1:04 pm



Albert Okumagba: First Bank seeks to declare him bankrupt

Albert Okumagba: First Bank seeks to declare him bankrupt

A Federal high court sitting in Lagos south west Nigeria has adjourned till 14  October 2015, a bankruptcy suit filed against the Chairman/Chief Executive Officer of BGL Securities Limited and BGL PLC Chief Albert Okumagba by First Bank of Nigeria Limited

In a Petition accompanying a bankruptcy note filed before the court by a Lagos lawyer Dr Joseph Nwobike (SAN) on behalf  of First Bank, the bank  stated that Okumagba became indebted to it in the sum of N1.4 billion  by reason of the judgement of the court delivered on 26 September,2014, by Justice Mohammed Idris. It was on the suit filed by First Bank against Okumagba and his companies, BGL Plc ans BGL Securities.

Since the judgement was delivered, the  bank said the debtor  has failed and refused to pay.

Although Okumagba  appealed against the judgement at the court of appeal and also  filed an application for stay of execution, the application was not granted.

Rather the court made an order directing him  to pay the judgment sum into an interest yielding account in the name of the Chief Registrar of the court within fifteen days from 31st of October,2014

Okumagba then  filed an application at the court of appeal seeking an order to vary the execution of the judgement of the lower court.

The  variation order  has not been made. And Okumagba and his companies said  they are unable to pay the judgement sum.

First Bank stated that the Okumagba  with intent to defeat or delay the claims , was alleged to have departed Nigeria or departed his dwelling place or otherwise absented himself from the bank’s reach.

The bank stated further that, by the Debtor’s actions, he has become bankrupt and incapable of paying the judgement sum or honoring his obligations,

Consequently,First bank thus prays the court for the following orders:
*An order adjudging the Debtor, Chief Albert Okumagba, businessman and Chairman/Chief Executive Office of BGL Securities limited and BGL Plc of 12,Catholic Mission Street,Lagos state, Bankrupt.

*An order directing that all assets,interests and holdings of the Debtor,Chief Albert Okumagba, either held personally or through third parties and privies,be liquidated and the proceeds applied towards offsetting his debt obligations to  First bank

*An Order divesting the Debtor Chief Albert Okumagba of all interest and holdings in all public and private companies.
*An order of perpetual injunction restraining Chief Albert Okumagba from appointment as Director in any public or private company in Nigeria
*An order freezing or attaching all the assets of the Debtor for the direct benefit of the Creditor.

However in a notice of intention to oppose the petition filed before the court on behalf of Chief Albert Okumagba by a Lagos lawyer,Barrister Ayoola Ajayi,the Debtor while specifically denying some paragraphs of the petition averred that on the 29th of September,2014,he had promptly appealed against the aforesaid judgement and he also has a motion for an order of unconditional stay of the execution of the order at the court of appeal. Okumagba said based on this he  is not  oblige to pay the judgement sum until the hearing and determination of the said motion contrary to the allegation in the petition and its verifying affidavit.

Okumagba contended that he is not bankrupt as alleged by First Bank  and urged the court to dismiss the suit and award substantial cost in his favour.

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