Investment banker sues Dantata, MRS over $44.5m indebtedness

A Lagos High Court, Ikeja Judicial Division will on June 17 rule on whether it has jurisdiction to determine a $47 million loan suit between and investment company, Nichole Integrated Investments Ltd, and oil Magnate, Alhaji Sayyu Dantata, and his three companies, MRS Holdings Company Limited, MRS Oil Nigeria PLC, and Bestaf Trading Company Ltd.

Joined as claimant with Nichole Investment Ltd in the suit is its Managing Director Mr Peter Imafidon Omokharo, who according to its statement of claim, gave $47 million loan to Dantata and his companies(defendants) to meet its shortfall towards acquisition of Chevron-Texaco Africa Holdings(Ivory Coast Operations on August 5, 2009.

In the statement of claims filed before the court by the claimants lawyer, Mr Dele Adesina SAN,  Dantata had already secured a $300 million facility from Union Bank over the same acquisition and therefore not ready for further exposure. In order to assist the defendants, an Executive Director of Union Bank, Mr Austen Obigwe introduced Omokharo, an investment expert to Alhaji Dantata to assist in facilitating the shortfall.

After series of meetings and negotiations, both parties agreed to the following terms:

• That the defendants had resources to pay back the amount sought from the claimants.
• In substantiation of the above, Alhaji Dantata and second defendant, MRS Holdings Company Ltd stated that the Federal Government of Nigeria was indebted to the third defendant MRS Oil  Nigeria PLC in the sum of N20 billion being an outstanding payment due from petroleum subsidies.
• That the $47 million loan facility will be settled by the first and second defendants upon the receipt by the third defendant, the N20 billion owed by the Federal Government.
• That parties further agreed that interest of 10% per annum would be paid to the claimants on the said $47 million.

Upon this agreement, the first claimant, on August 5, ,2009 successfully transferred the sum of $44,516,000:00 to Chevron Africa Holdings Ltd through Coral Bureau Account with Union Bank PLC. Dantata went ahead to acquire the 60% of the Chevron-Texaco Africa Holdings.

Things however began to turn sour soon after when the defendants began to repay in piecemeal. “In contravention of the clear promise, undertaking, and agreement by the defendants to stand by the agreement regarding payment and satisfaction of the loan facility, the defendants chose the path of a piecemeal and staggered repayment procedure to the extent that substantial amount of repayment still remains outstanding and unpaid despite several oral and written demands”, the claimants averred.

In all, the defendants repaid $21, 156,374:00 between January 2013 and July 10, 2017. “The payments were received with respect to the principal loan facility leaving an outstanding sum of $23,359,626:00. All the repayments were made in naira which were then converted to dollars. The agreed interest of 10% has not been touched.

Also every effort made by the claimants to ensure repayment was frustrated by the defendants. Such efforts included issuing 57 promissory notes of $1 million amounting to $57 million but the defendants reneged after the notes were prepared by the claimants lawyers.

The claimants further averred that after the defendants retracted their position on the promissory notes, the first defendant towards the end of 2018 again made a move for a meeting which was held between the claimants, first, second defendants and Mr Austen Obigwe. After extensive deliberations, it was agreed that the first defendant, on behalf of himself and other defendants, will transfer 200,000 square meters of the landed property of the fourth defendant at Lekki Free Trade Zone at the rate of $40  totalling $8 million as part payment of the debt. Despite the fact that it was a proposition made by the defendants, they not only reneged, but also jerked up the price to $100 per square meter. The claimants still agreed, but like the promissory notes, the defendants reneged at the point of signing the agreement.

The claimants stated further: “Altogether, the total repayment made by defendants stand at N3,332,469,616.54 which after being exchanged to dollars at different times and periods amount to $21,156,374.00 between the period of January 2013 to July 2017.

The claimants therefore urged the court to hold that the debt owed by the defendants amount to $23.3 million, payment of 10% interest on the sum of $44.5 million as agreed at the beginning of the loan, interest rate of 6% from the date of judgment, and N25 million general damages.

However, in the statement of defense filed by the defendant’s lawyer, Olushola Abiloye, the defendants stated that the court lacked jurisdiction to adjudicate on the suit on the following grounds:

• Assuming without conceding that the claimants have a cause of action against the defendants, their right of action has been extinguished by the Limitation Laws of Lagos State.
• The statement of claim discloses no reasonable cause of action against the defendants.
• The claimants lack the locus standi to institute the suit against the defendants.

The defendants denied ever entering into any loan agreement with the claimants, calling their suit a “figment of their imagination”.

It stated: ” The second defendant was shocked to the marrow when it received the claimant’s letter dated March 21 wherein it alleged the existence of a loan in the sum of $47 million and demanded for the payment of the sum of $96.9 million being alleged debt plus interest owed by the second defendant “.

Justice Latifat Folami is expected to decide the issue of jurisdiction on June 17.