Unpaid N215.2m loan: Cityflex company boss dragged to court

Unpaid N215.2m loan: Cityflex company boss dragged to court

Saturday, April 21, 2018 9:32 am


By Akin Kuponiyi

In a bid to recover a debt of N215.2 million, United bank of Africa (UBA) has dragged a Lagos businessman, Prince Solomon Adediran Aluko and his company, Cityflex Express Limited before a Lagos high court.

The bank is also seeking an order in the alternative of the court foreclosing the defendants’ right to redeem the mortgaged property situated at 82,Allen Avenue, Ikeja,Lagos registered as page 59 of Volume 1657 at the lands Registry, Alausa Ikeja Lagos,used to secure the loan.

In a statement of claim filed before the court by a Lagos lawyer, Barrister Akin Adesomoju, the bank averred that, by letter of offer dated 7th of March 2014 the bank granted N350 million loan to CityFlex Express Company, for the purposes of financing purchase orders the company got from counter parties, buying out of the company’s indebtedness to Unity bank Plc and augmenting its working Capital among others.

The bank stated that it reserves the right to dispose off of the mortgaged property situated at 82,Allen avenue Ikeja and apply the proceeds towards liquidating the Company’s outstanding indebtedness.

The company, in contravention of its covenant to promptly pay down the outstandings on the facilities and interest as they fall due, defaulted in its repayment obligations.

This prompted the bank to mandate its solicitors, Messers Akin Adesomoju to demand the liquidation of the defendants’ Outstanding indebtedness and recover same.

Whereof the bank claims against the defendants, jointly and severally are as follows :A declaration that the defendants are indebted to the bank in the sum of N215.2 million.

An order foreclosing the defendant’s right to redeem the mortgaged property situated at 82, Allen Avenue Ikeja.

An order that Prince Solomon Adeniran Aluko should deliver vacant possession of the property to the bank.

In a preliminary objection, the defendants contended that the bank commenced this suit through a wrong procedure therefore urged the court to either strike out the suit or in the alternative order parties to file their pleadings.

In her ruling, the presiding judge, justice Deborah Oluyemi while adjourning till 9th of July, 2018 for hearing, struck out the preliminary objection of the defendants and ordered the parties to file their pleadings.

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