Akin Kuponiyi
In a bid to recover a debt of N355,000,000, Standard Chartered Bank Nigeria Limited has dragged two limited liability companies—Dana Motors Limited and Dana Plast Limited—before a Federal High Court in Lagos.
In a statement of claim filed before the court by a Lagos lawyer, Dr Niyi O. O. Olopade, SAN, the bank averred that sometime in 2012, at the instance of Dana Motors Limited, it advanced credit facilities comprising an overdraft of NGN200,000,000, a $5,000,000 import letter of credit limit, and a $4,000,000 loan. The facilities were provided to cover transactions involving Vandana FZCO, a sister company of Dana Plast Limited.
Similarly, around the same time in 2012, at the instance of Dana Plast Limited, the bank advanced an overdraft facility of N200,000,000, which was drawn by the company.
Due to repeated defaults by the defendants in liquidating the facilities, the bank restructured them at the instance of each defendant via a letter dated 21 April 2015 and subsequently by another letter dated 14 May 2019.
As of 30 December 2016, Dana Motors’ indebtedness to the bank stood at a negative balance of N389,142,584.10, while the sum of $2,646,041.34 remained outstanding on the facilities granted to provide cover for Vandana FZCO, with interest still accruing.
The bank further averred that, as of the same date, Dana Plast Limited’s indebtedness stood at a negative balance of N315,489,875.00 on the credit facilities granted, with interest also accruing.
The bank stated that, due to the defendants’ inability to liquidate the facilities in accordance with their respective facility letters, it was constrained to file winding-up petitions against them in Suit Nos. FHC/L/CP/630/2021 and FHC/L/CP/640/2021 on 21 June 2021.
The bank further stated that upon receipt of the winding-up petitions, the defendants approached it to explore an amicable settlement. Thereafter, they jointly offered to pay a total sum of NGN1,100,000,000 in instalments between 20 September 2021 and 20 October 2022 as full and final settlement of the debt owed.
The bank also averred that Dana Plast Limited, by its letter dated 5 July 2021, reiterated the offer but adjusted the payment period to between 20 August 2021 and 20 October 2022.
Pursuant to the offer and its acceptance, the defendants jointly paid NGN745,000,000 out of the agreed NGN1,100,000,000, leaving a balance of NGN355,000,000 unpaid despite the expiration of the agreed payment period.
The bank stated that the sum of NGN745,000,000 paid included proceeds from the sale of a mortgaged property located at Penthouse, No. 19, 9th Floor, Block A, Admiralty Towers, No. 8 Gerrard Road, Ikoyi, Lagos, which was sold for N234,000,000 at the defendants’ request.
The plaintiff further stated that due to the compromise reached and the part payment made, it withdrew the winding-up petitions on 16 February 2026, and the suits were accordingly struck out by the court. However, the defendants still owe the outstanding balance of NGN355,000,000.
The bank stated that immediately after the petitions were withdrawn, the defendants requested a letter of non-indebtedness, which it declined, reminding them of their outstanding obligations.
It further stated that the defendants have never denied their indebtedness and have acknowledged the debt in several correspondences and affidavits deposed to by one Sodiq Olorun-Oje on 25 March 2025.
According to the bank, despite repeated pleas for extensions and its continued indulgence, the defendants failed to liquidate the outstanding debt. The defendants later requested a waiver and offered to pay NGN100,000,000, which the bank rejected, countering with NGN105,000,000 to be paid within 14 days—an offer the defendants also failed to meet.
Following the striking out of the winding-up petitions, the bank again demanded payment of the outstanding NGN355,000,000, but the defendants allegedly failed, refused, and/or neglected to pay.
Consequently, the bank instructed its solicitors, Messrs Niyi Olopade & Co., to initiate legal action to recover the sum.
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