Lister Flour Mills  N10.7b debt: Court adjourns ‪till 17 Feb ‬for report of settlement

 Lister Flour Mills  N10.7b debt: Court adjourns ‪till 17 Feb ‬for report of settlement

Tuesday, December 10, 2019 9:33 am

Arisekola Alao

MAkin Kuponiyi

A Federal High Court sitting in Lagos south west Nigeria has adjourned till February 17,2020,for First bank of Nigeria Limited and Lister Flour Mills (the company owned  by late Ibadan business mogul Arisekola Alao  to file another term of settlement in a N10.7billion debt recovery suit pending before the court.

The  initial  terms of settlement filed before the court was alleged to have been aborted.

When the matter was mentioned, the counsel representing First bank told the court that the terms of settlement filed before the court cannot be adopted because the defendants Lister Oil Limited  Mills and Mrs Khadijah Alao -Straub have scuttled the  terms of the settlement, consequently they are fine tuning another terms of settlement that will soon be filed before the court, once the process is completed,therefore the court was urged to grant them an adjournment,which the court acceded to.

First bank Nigeria Limited  was alleged to have granted credit facilities (Loans) to LISTER FLOUR MILLS (NIGERIA) LIMITED which facilities were renewed and restructured and eventually culminated into a debit balance of N10, 787,556,430.02 while interest continues to accrue.

The securities for the facilities availed the   Lister Flour Mills by the  bank amongst others include:

The company  undertaking, goodwill and assets including the entire piece and parcel of land lying being at Idiroko Olomoyoyo, Ibadan – Ijebu Ode Road, Ibadan, Oyo State, Nigeria together with the building or building erected thereon.

Lister Oil company  Deed of Corporate Guarantee dated 22nd of May, 2013 wherein the Company  guaranteed,  the repayment of the various facilities availed the Lister Flour Mills by the  bank.

Personal guarantee of Ismail Alao dated 22nd of May 2013,wherein he guaranteed the repayment of the various facilities availed Lister Flour Mills.

Lister  Flour Mills has failed to fully repay the loans to First bank  and the loans remain unpaid till date.

The   Bank in exercise of its rights as Mortgagee under the Deed of legal Mortgage over the lagos Property appointed a Receiver of the property and assets of the Lister Flour Mills, the Deed of Appointment of the Receiver together with the Notice of Appointment were duly filed with the Corporate Affairs Commission.

The bank and its receiver /manager filed this legal  action  seeking orders of the court to restrain the defendants or any person acting under their authority or any person whether shareholder, officers, agents, privies and/ or employees from challenging, interfering with or otherwise obstructing the performance of the statutory duties of the Receiver/manager in any manner whatsoever

On the 11th day of February 2015, the court granted the orders as prayed by the Receiver/manager

The Defendants, in their defense  denied all the claims made in the debt recovery suit filed against them.  and are challenging the appointment of the  Receiver/ Manager over Lister Flour Mills Nigeria Limited as well as steps, which the Receiver/manager has taken.

However the parties have now agreed to settle and resolve this legal action together with other related suits arising from receivership upon the time and conditions stated in the terms of settlement.

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