UBA drags Sahara Energy to court over N15bn loan

April 13, 2019
246 Views

UBA Plc has filed a winding up petition against Sahara Energy Resource Limited (Sahara Energy) at a federal high court in Lagos.

The petition was based on a N15 billion loan owed by KEPCO Energy Resources Limited (KEPCO).

Sahara Energy had stood as a guarantor to KEPCO.

.The petition was filed before Mohammed Liman, a judge of the high court, by Temilolu Adamolekun, UBA’s legal counsel.

The bank said KEPCO had through a loan, raised capital to fund the acquisition of Egbin Power Plant, operated by Sahara Power Group, a privately-owned power company under the Sahara conglomerate.

In 2013, the federal government granted KEPCO, a Korean company 70% stake of Egbin power plant at a sale value of $407.3 million, which was equivalent to N64.35 billion at the existing exchange rate.

In order to fund that acquisition, the petitioner said KEPCO had applied for a credit facility from several banks, including UBA, with Sahara Energy standing in as a “corporate guarantor” to secure the loan.

FBN Capital Limited and First Nigeria Limited were appointed as the facility agent and security trustee respectively.

UBA had therefore granted KEPCO a loan to the tune of $35 million in August 2013.

The petitioner said KEPCO failed to meet its obligations even after restructuring the loan on two different occasions.

The interest on the rescheduled debt is said to have increased the facility to $42,282,430.49 or N15, 221,674,976.40 as of December 31, 2018.

The petitioner said Sahara Energy had been notified several times to fulfill its obligation as a guarantor but had not done so, hence the the need to file a winding up order.

“The company herein is insolvent and unable to pay its debt. In the circumstances, it is just and equitable that the company should be wound up,” the petition read.

The petitioner also sought “an order that the company, Sahara Energy Resources Ltd, be wound up by the court under the provisions of Companies and Allied Matters Act.”

Following an ex-parte motion filed by Adamolekun, the bank’s lawyer, Liman ordered that the winding up petition be advertised in the federal government’s official gazzette and a national daily newspaper.

But Sahara Group has denied being indebted to UBA, saying it neither has outstanding facilities with the bank nor did it borrow any money from UBA.

The firm added that it did not grant a direct guarantee to UBA on any loan transaction that UBA could unilaterally enforce or sue on.

“Our lawyers have been duly instructed and have taken all necessary steps to ensure that the order is discharged or set aside as soon as practicable,” Sahara Group said in a statement.

The hearing of UBA’s petition has been adjourned till April 30.

You may be interested

Pride Begets Downfall — Anglican Cleric Tells Church Members, As ACORA Marks 2024 Palm Sunday in Grand Style
News
News

Pride Begets Downfall — Anglican Cleric Tells Church Members, As ACORA Marks 2024 Palm Sunday in Grand Style

Webby - March 24, 2024

By Izunna Okafor, Awka Ear-piercing echoes of Hosanna rent the air in Awka, the capital city of Anambra State on…

IPOB dares military, heads for court over member declared wanted
News
2 views
News
2 views

IPOB dares military, heads for court over member declared wanted

Webby - March 24, 2024

The Indigenous People of Biafra (IPOB) on Sunday called on the Defence Headquarters to direct its energy to Finland-based legal…

Advertising guru, Onabolu to chair 2024 Industry Summit on May 3
Business
3 views
Business
3 views

Advertising guru, Onabolu to chair 2024 Industry Summit on May 3

Webby - March 24, 2024

  The Group Managing Director of COSSE Group, one of the leading integrated marketing communications (imc) in Nigeria, Mr. Funmi…

Leave a Comment

Your email address will not be published.