N8.86bn debt: Bank battles late billionaire’s family

First Bank of Nigeria has dragged the children of late Alhaji Abdulazeez Arisekola Alao and his company, Lister Flour Mills Nigeria Limited to court over a debt of N8.86bn.

Pursuant to an order of a federal high court in Lagos, the bank has refilled a suit against two directors of the company Mrs Khadijah Alao-Straub, Mr Ismail Alao and a sister company, Lister Oil limited.

Lister Flour Mills is a company formerly owned and promoted by the late Ibadan socialite, business mogul, religious promoter, philanthropist and traditional chieftain, Alhaji Abdulazeez Arisekola Alao.

In the suit First Bank claimed that between 24th of January 2011 and November, 2013 Mrs Khadijah Alao-Straub, then acting in her capacity as director of Lister Flour Mills, requested and secured various loans from the bank amounting to over ₦6 billion.

The loans were secured by a perfect deed of mortgage debenture dated 23rd of October, 2002 over the company’s assets which include the entire parcel of land lying at Idiroko Olomoyoyo, Ibadan-Ijebu-Ode Road, Ibadan, Oyo State containing area of approximately 31 acres. This was complemented by deeds of guarantee from a sister company Lister Oil Limited and a director Mr Ismail Alao.

The bank averred that Lister Flour Mills failed to settle their outstanding obligations as at when due, despite numerous letters and reminders. This led the bank to call in the facilities and serve demand letters for immediate payment of the outstanding debt. Further non-cooperation by the defendants finally led the bank to appoint a receiver manager to liquidate the company’s assets.

The bank is therefore seeking judgements against the defendants to the tune of ₦8.86 billion, being the cumulative total of the loans and interests accrued up to 5th September 2015. It is also seeking an order of injunction barring the defendants and their agents from interfering with the work of the receiver/manager in charge of liquidating the company’s assets.