Innoson To GTBank: Convert N8.7 bn Judgement Debt To Shares |The Republican News

Innoson versus GTBank

Owing to the inability of Guaranty Trust Bank (GTB) to comply with the Supreme Court’s judgement ordering it to pay N8.7 billion to Innoson Nigeria Ltd., the company has asked the bank to convert the said sum or part of it to shares for its benefit. This was contained in a statement issued yesterday by Innoson Group’s Head of Corporate Communications, Cornel Osigwe.

The company had earlier written the bank through its lawyer, McCarthy Mbadugha, demanding the payment of the judgement sum and accrued interest. In the letter dated 25th March, 2019, addressed to Managing Director of GTB, the lawyer recalled that, “On 20th December, 2010, the Federal High Court, Ibadan Division, delivered judgement in suit No. FHC/L/ CS/603/2006 between Innoson Nigeria Ltd. and Nigeria Customs Service in favour of Innoson Nigeria Ltd in the following terms: (I) N700,200,000; (II) 22 per cent interest per annum on the said sum from commencement of action; and (III) 22 per cent interest per annum on the said sum from the date of judgement till final liquidation of judgement sum.”

It was further added that the same court, on 29th July, 2011, in a garnishee order, directed the bank to pay N2,048,737,443.67, being the principal judgement and accrued interest. Innoson’s lawyer further noted that dissatisfied with the orders, the bank lodged several appeals up till the Supreme Court where a final decision was reached on 27th February, 2019 affirming the lower court’s judgement. Consequently, the lawyer is demanding the payment of N8.7 billion, representing judgement sum and accrued interest from GTB, to his client.

However, in the statement issued by Osigwe as a follow-up to the letter, Innoson further demanded the immediate payment of the money from the bank or that in the alternative, the money should be converted to shares for its benefit. According to Osigwe, the request was sequel to claims by the bank that paying the debt will not only affect its operations negatively, but will also erode its capital base. “Innoson Nigeria Ltd. is aware that GTB had earlier deposed to an affidavit in the court that its banking operation will be seriously and adversely affected, and also its capital base eroded if it complies with the order of the court.

“Based on the foregoing and in furtherance of the letter to GTB by counsel to Innoson Nigeria Ltd., McCarthy Mbadugha, on 25th March, 2019, that it pays the N2.4 billion judgement debt to Innoson Nigeria Ltd. with the accrued interest of N6,717,909,849.96, Innoson Nigeria Ltd., therefore, demands from GTB that if its banking operation will be seriously and adversely affected, and its capital base eroded as a result of the N8.7 billion judgement debt, that it should, as a matter of utmost urgency, convert the said sum or part of it into shares and allot same to Innoson Nigeria Ltd,” the statement partly reads.

Osigwe further noted that in order to stop Innoson from continuing with taking over its assets in execution of the judgement, GTB approached the Federal High Court, Ibadan on Friday, 5th April 2019 and requested the court, through a motion for a stay of execution and or for an injunction restraining Innoson from continuing with executing the judgement. According to him, the Federal High Court sitting in Ibadan refused to grant the bank an injunction to restrain Innoson from continuing to execute the judgement. (New Telegraph)


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GTBank In Disarray As Massive Withdrawal, Closing Of Accounts By Igbo, Others Gather Momentum

By Ike A. Offor

They wished they never got involved in Innoson group boss, Innocent Chukwuma with EFCC saga. But it is a move that badly got the them burnt. Guaranty Trust Bank has exposed its bad customer service delivery deficiencies to the public.

Since the news of arrest of Innoson Motors in a case involving the bank, its reputation has been badly marred by more stories of frivolous charges on their customers apart from the one done to Chief Innocent Chukwuma.

Related: GT Bank In Desperate Move To Stop Aggrieved Customers From Closing Bank Accounts |RN

The move to close accounts in GTBank has just gathered momentum and many are now determined to follow those who have done so in the last three days. The chances of this easing or frayed nerves of customers, mainly Igbo one calming, is very remote.

Though Nigerians are very sensitive about tribal issues, this has touched the very man the Igbo love most due to the fact that he is a shinning example of bringing businesses home, something the Igbo have been crying for in the last few years.

GTBank has erred against the very people who kept it in business. Other banks will learn a lesson or two in this saga. Do not mess with your customers because they are the very reason you have business in the first place.

This gathering momentum, if not checked, would take GTBank to bankruptcy. Above all, they have suffered a very terrible customer service backlash. Their reputation now in customer service delivery has been exposed to a very  limelight.

Like many have said, this is not about Igbo versus GTBank issue but the bank versus customer service stunt gone badly wrong.

Many non-Igbo also closed their accounts and some are extremely rich business men as was mentioned by Femi Fani-Kayode in his article titled “The Innoson affair, the Igbo and orphans of the corporate  world”

Related: The Innoson Affair, The Igbo And The Orphans Of The Corporate World – Fani-Kayode |RN

Many have complained in the past about how GTBank withdraw their money at will and never return them.

Some of these aggrieved customers are the first to find reason to close their account since this incident with Chief Innocent Chukwuma took place.


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