- Seplat, Access Bank In Nasty War Over Cardinal Drilling’s default in loan repayment!
The once chummy business relationship between Seplat Petroleum Development Company (SPDC) and Access Bank of Nigeria Plc, has given to a nasty war over reported indebtedness of a third party.
This development has generated a growing spat between the management of both companies with a looming legal battle in sight as Seplat has threatened to initiate legal actions against Access Bank of Nigeria PLC for sealing up its corporate head office in Lagos.
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The New Diplomat’s checks reveal that Access Bank has sealed off the SPDC’s corporate head office located at 16A Temple Road, Ikoyi, Lagos. The issues in contention it was gathered centred around the refusal or inability of an alleged third party(Cardinal Drilling) to pay up a staggering loan which Access Bank offered to the company in question.
However, in response, the management of Seplat insist that its company has not shareholding in Cardinal Drilling, neither has it any outstanding loan obligations to Access Bank. SPDC also affirms that it did not at any time make any written commitment or guarantee in respect of Cardinal Drilling’s loan obligations to Access Bank.
In another development, Seplat in its quick reaction to Access Bank’s decision to seal of its corporate head office located at 16A Temple Road, Ikoyi, Lagos, has decided to question the legality and validity of Access Bank’s action., saying that the latter’s move lacks legal order.
A press statement issued by Seplat, and signed by its company’s Secretary who also doubles as General Counsel, Mrs Edith Onwuchekwa said “SEPLAT will vigorously defend against this improper action to the full extent of the law and will seek all appropriate legal remedies.”
The statement further stated: “We understand that Cardinal Drilling has outstanding loan obligations to Access Bank. However, SEPLAT is neither a shareholder in Cardinal Drilling, nor has outstanding loan obligations or guarantees to Access Bank and did not at any time make any commitments or guarantees in respect of Cardinal Drilling’s loan obligations to Access Bank. SEPLAT strongly believes that there is no merit or justification for this action against it and has taken prompt legal action to vacate the court order pursuant to which the building was sealed.
“This action was taken by Access Bank without any prior notice to SEPLAT, as required under Nigerian law. SEPLAT will vigorously defend against this improper action to the full extent of the law and will seek all appropriate legal remedies.”
It was gathered that the third party in question in the dispute, which is Cardinal Drilling Service Limited, has defaulted in meeting its loan obligations to Access Bank. This action consequently moved Access Bank to initiate an action to seal off SEPLAT’s corporate head office in Ikoyi Lagos, predicating its action on a subsisting court order.
Cardinal Drilling prides itself as a new generation indigenous Drilling Company that will bring in quality rigs, and deploy competent manpower to work.
But unfortunately with this latest development, the company faces serious integrity and reputational crisis, an emergency that has further escalated far-reaching anxiety and triggered many grave questions about the appropriateness of its operational and business model.
First, its perceived business model has precipitated a crisis within its organization which has unfortunately been externalized on account of Cardinal Drilling’s reported lack of competent Crisis Management Team and sound Crisis Management Strategy (CMT & CMS)to address the situation.
Consequently, this crisis has snowballed into a combat and provoked Access Bank to stir up further emergencies by sealing off the corporate headquarters of SEPLAT.
Cardinal Drilling’s managing director and CEO is Kalu Nwosu, who previously worked at Shell and Brittania-U Nigeria Ltd could not be reached for comments as at the time of going to press.
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