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Print version Bank Takes Over Abiola Bookshop

Posted by By Akin Kuponiyi on 2008/10/16 | Views: 661 |

Print version Bank Takes Over Abiola Bookshop


In a bid to recover a debt of N238 million following an order of a federal high court, Access Bank Plc. has taken over the Zulikha Wuraola Abiola House otherwise known as Abiola Bookshop situated at 362, Herbert Macaulay Street, Ebute-Metta, Lagos.

In a bid to recover a debt of N238 million following an order of a federal high court, Access Bank Plc. has taken over the Zulikha Wuraola Abiola House otherwise known as Abiola Bookshop situated at 362, Herbert Macaulay Street, Ebute-Metta, Lagos.

According to an affidavit filed before the court by Access Bank Plc against the two defendants, Abiola Bookshop Ltd. and Samusideen Afolabi Ayodeji Abiola, in 2005 Abiola Bookshop Ltd., a sister company to Caledonian Investment Ltd., both of whom are customers of Access Bank Plc, guaranteed a loan taken by Caledonian Investment from Access Bank Plc.

In the course of the relationship, Caledonian Investment Ltd. was offered facilities of N170 million by the bank.

As part of security pledged for the granting of the loan, Abiola Bookshop executed a tripartite deed of debenture wherein it charged its undertaking good will, and properties in favour of the bank while Mr. Samusideen Ayodeji Abiola executed the memorandum of acceptance on behalf of Caledonian Investment.

At the expiration of the tenure of the facilities, the respondents failed to liquidate the loan which has continued to attract interest.

The bank averred further that several efforts had been made to retrieve its funds from the respondents but all the efforts failed.

It was also alleged that the bank was left with no option than to exercise the power vested in it in the Deed of Debenture executed in its favour by the respondents.

Consequently, the bank urged the court to restrain the respondent and their directors from hindering the receiver/manager appointed from taking over Zulikha Wuraola Abiola House.

In order to take over the assets of Abiola Bookshop, the bank appointed a receiver manager and filed an application before the court for an order to take over the property and empower the receiver manager appointed by the bank in the course of performing his duties, over all the properties of Abiola Bookshop.

In his ruling, Honourable Justice Ramat Mohammed ordered as follows,

a. That an interim order is hereby made granting leave to the bank and the receiver manager appointed by it to take over and preserve Abiola Bookshop properties covered by the Deed of Mortgage Debenture

b. An interim order was also made restraining the defendants and their agents from interfering or obstructing the receiver manager in the course of performing his duties.

The indebtedness of the respondent was alleged to be in the sum of N238 million as at January this year.

Access Bank with its receiver manager, took possession of Zulikha Abiola House yesterday and they are now in complete control of Abiola Bookshop and its assets.

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