Tuesday, January 31, 2023
Home Law 11PLC heads to S'Court over sale of Lagos  Continental Hotel

11PLC heads to S’Court over sale of Lagos  Continental Hotel

.Files  stay of execution  of Appeal Court’s judgment 

The Asset Management Corporation of Nigeria (AMCON), Polaris Bank Limited and 11PLC have approached the Supreme Court seeking to quash the recent judgement of the Appeal  Court nullifying the sale of Lagos Contintental Hotel to 11PLC.

In a statement issued yesterday, 11PLC stated that the parties appealed to the Supreme Court vide its Notice of Appeal dated December 5, 2022.

 The statement  signed by a senior legal officer of the company, Samuel Ozeh further disclosed that the parties have also filed a motion for stay of execution of the Appeal Court’s  judgement, pending the determination of the suit by the Supreme  Court.

According  to the statement, the motion for stay of execution, copies of which were made available to journalists, was also dated December 5, 2022.

 “This move has effectively arrested the ability of Milan Industries Limited to enforce the Appeal Court’s judgement and would compel the parties to maintain status quo pending the final determination of the appeal by the Supreme Court,” the statement said.

“In view of this situation, the ownership and operation of the Hotel by 11 Hospitality is not in any way impacted. “11 Hospitality remains upbeat in the circumstance as its acquisition of the Hotel followed due process and it believes AMCON assigned a valid title to it pursuant to the extensive powers vested in the Corporation under section 34 of the AMCON Act (as amended),” the statement  added.

Recall that AMCON acquired the Lagos Continental Hotel as an eligible bank asset following the failure of Milan Industries Limited to repay its loan to Skye Bank plc (now Polaris Bank Limited) to the tune of N15 billion with the interest element of the loan verging on N30 billion at the time. 

The loan may have partly contributed to the plunging of the bank into financial distress and thereby necessitated AMCON’s acquisition of its non-performing loans, including that of Milan Industries Limited.

In 2020, AMCON, in line with its powers under section 34 of the AMCON Act (as amended) assigned its interest in the Hotel to 11 Hospitality Limited, a subsidiary of 11plc (formerly Mobil Oil Nigeria plc).  But the sale was challenged by Milan Industries Limited at the Federal High Court, which dismissed the suit and affirmed the sale by AMCON, after it found no merit in Milan’s claim of having repaid the huge loan it took from the Polaris Bank Limited.

Milan Industries Limited then appealed the decision of the Federal High Court, and the Court of Appeal in its judgement set aside the decision of the lower court.

AMCON, 11PLC and Polaris Bank have approached the Supreme Court  to nullify the judgement  of the Appeal Court.

RELATED ARTICLES

NIMASA meets five select banks over disbursement of cabotage fund 

“We are engaging the banks on the management and disbursement of the CVFF because they are the ones who have the professional know-how in fund management and this would help us in the reduction of risk in order to avoid the same mistakes of the Ship Acquisition and Ship Building Fund,” Jamoh said.

Buhari approves disbursement of cabotage vessel financing fund

The Minister of Transportation, Engineer Mu’azu Jaji Sambo who made the announcement at a press conference at the weekend said that the Presidential approval received by the Ministry on Friday confirmed Union, Zenith, Polaris, UBA and Jaiz Banks as the appointed Primary Lending Institutions for the disbursement of the funds.

Nigeria, Morocco, five other W/African Countries sign on Gas Pipeline Project

NNPCL in a series of tweets, said Nigeria's @nnpclimited, Morocco's ONHYM and the nations of Ghana, The Gambia, Guinea, Guinea Bissau & Sierra Leone, signed an MoU on the gas pipeline project

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Transcorp Power adds 138MW to national grid, commissions rehabilitated GT Unit 20

Chief Executive Officer, Transafam Power Limited, Engr. Vincent Ozoude, expressed delight about the newly rehabilitated unit, which is able to power up to 100,000 homes in a year. 

Fuel scarcity: Oil workers threaten action, want fuel available at approved price

The union in a statement, urged the NMDPRA to compel all marketers and retailers to make the products available at approved price. 

Friesland Campina reconnects to Ikeja Electric after 22 years 

According to the Acting Head of Corporate Communications Ikeja Electric, Kingsley Okotie, the reconnection of Friesland Campina back to the grid was achieved through relentless effort of the Business Optimization team of Ikeja Electric.  

Egbin Power, Sahara Foundation upgrade Ijede Police station

The project, according to a statement, is in keeping with Egbin Power’s commitment to enhancing infrastructure development, socio-economic growth, and effective policing to promote safety and security in the company’s host communities.

Recent Comments