BOI, Unity Bank in Court over N150m Loan

Cat:

Related stories

Air India crash: What may have gone wrong? A commercial pilot’s first analysis

There is speculation of right rudder input, which could...

National Assembly Designates June 12 as Nigeria’s Annual Presidential Address Day

By Abiola Olawale The National Assembly (NASS) has officially adopted...

Oil Prices Dip but Bullish Sentiment Remains

Crude oil prices dropped back slightly on Thursday, after...

Boeing Stocks Crash By 5% After Air India plane crash, Killing Over 200 Passengers

By Abiola Olawale The shares of an aerospace giant, Boeing,...

Bank of Industry (BOI) and the Unity Bank Plc on Tuesday were at the FCT Court, over non performance of N150 million loan granted to Valentino Project Ltd. by BOI.

Valentino Project Ltd. had in 2012 secured a loan of N150 million for the construction of water treatment factory and production in Kuje, FCT, while Unity Bank acted as its guarantor.

Mr Toluwaseun Alabi, the Counsel to the plaintiff, Valentino, said that Unity Bank acted as the guarantor for Valentine Project Ltd. to secure the loan.

Alabi said that a loan of N150 million was given to Valentino to set up a water treatment factory and production line in Kuje, adding that “it did just that, while Unity bank acted as the guarantor to Valentino.’’

He said that in August 2013, Valentino received a communication from BOI that the transaction had been terminated.

He however argued that since the loan was for five years and still operational; it would amount to a breach of agreement if it was terminated.

“Valentino Project Ltd. has built the water treatment factory and production in Kuje and bought the needed equipment, in fact everything is on ground,“ he said.

Alabi said that Valentino had refused to commence work because of the problem it had encountered, adding that the project was stalled because the N150 million had not been fully disbursed.

“It was just remaining about N5million to complete the loan and finish the project because the company has built the factory and set up everything.

“But because the Relationship Manager of Unity Bank and the people handling the facilities on behalf of BOI and Valentino Project Ltd. were not having the best of times, it just cut off as guarantor without recourse to the investment.’’

He said that there was a project appraisal before the BOI gave out the loan, adding that based on Valentino’s performance, the loan was given to the company.

Peter Inegi Counsel to the defendant, Unity Bank said that before the loan facilities was given out to Valentino, there were conditions and some obligations attached to it.

He said that Valentino was supposed to perform based on those conditions and obligations, adding that 100 per cent  performance was expected before any intervention.

“Unity Bank acted as Valentino Project Ltd. guarantor for  N150 million to BOI, but BOI had to act by withdrawing from Valentino Project Ltd. for non performance of obligations.’’

Justice Peter Affen of the FCT High Court, Maitama, however, reserved judgment until a date to be communicated to both parties. (NAN)

Hamilton Nwosa
Hamilton Nwosa
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

NDN
Latest News
Air India crash: What may have gone wrong? A commercial pilot's first analysisNational Assembly Designates June 12 as Nigeria’s Annual Presidential Address DayOil Prices Dip but Bullish Sentiment RemainsBREAKING! [VIDEO] Sole Survivor Walks from Air India Plane Crash in AhmedabadBoeing Stocks Crash By 5% After Air India plane crash, Killing Over 200 PassengersRanked: U.S. International Students by Country[Video] Tragedy! UK Bound Air India Crashes, Over 204 Passengers PerishTinubu Confers National Honours on Yar'Adua, Kudirat Abiola, Ayo Adebanjo, Ken Saro-Wiwa, Humphrey Nwosu, Soyinka, Sam Amuka, Ibru, OthersSeeing Opposition In Disarray Gives Me Pleasure, Tinubu Taunts PDP, LP, OthersTinubu Denies Stopping INEC From Registering New PartiesDemocracy Day: Peter Obi Slams Tinubu for Prioritizing Politics Over the Welfare of NigeriansJune 12: PDP Raises Alarm, Says APC Is Plotting to Impose “One-Party State” on NigeriaDangote Steps Down as Sugar Chairman After Two Decades of LeadershipDemocracy Day: Reject 'Thugs Masquerading As Leaders', Utomi Urges NigeriansHow Nigeria's Money Got Into Foreign Accounts During Abacha's Reign -- Al-Mustapha
X whatsapp