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Sahara Energy, UBA trade words over N15bn power loan
Sahara Energy Resource Limited and United Bank of Africa Plc have continued to trade words regarding a lawsuit instituted by UBA against the energy company over a controversial N15bn power loan.
According to media reports, United Bank for Africa Plc is claiming that Sahara Energy Resource Limited allegedly served as a guarantor for KEPCO Energy Resources Limited, a Korean company which owes the bank the sum of N15 billion.
The loan was used to fund KEPCO’s acquisition of Egbin Power Plant – KEPCO had reportedly used the loan to fund the acquisition of Egbin Power Plant, which is now operated by Sahara Energy. United Bank of Africa therefore instituted a winding up petition against Sahara Energy.
The management of Sahara Energy Resource Limited (Nigeria), however, refuted the reports claiming that the company has outstanding credit facilities with United Bank for Africa Plc, UBA.
According to a press statement issued by Sahara Energy, necessary steps are also being taken to dismiss the winding up petition filed by UBA against the energy company.
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United Bank for Africa Plc is claiming that Sahara Energy Resource Limited allegedly served as a guarantor for KEPCO Energy Resources Limited, a Korean company which owes the bank the sum of N15 billion.
The loan was used to fund KEPCO’s acquisition of Egbin Power Plant – KEPCO had reportedly used the loan to fund the acquisition of Egbin Power Plant, which is now operated by Sahara Energy.
The companies involved – FBN Capital Limited reportedly served as the facility agent, while First Nigeria Limited served as the security trustee.
The Federal Government had granted KEPCO a 70% stake in the power plant back in 2013.
However, the energy company was emphatic in its response, stating that it is not indebted to UBA, neither does it have any outstanding facilities with the bank.
Sahara Energy is also denying that it served as a direct guarantor for any guarantor dealing with the bank.
Sahara Energy earlier sued UBA – Sahara Energy, alongside one of its affiliate companies, on February 13, 2019 filed a suit against UBA seeking “declarative and injunctive remedies relating to the unorthodox methods” the bank has supposedly employed towards settling the matter.
In response, UBA sued New Electricity Distribution Company Limited, Sahara Energy, First Trustees Limited, and Ecobank Capital Limited, “claiming certain declarations and injunctions to which SERL has filed full and comprehensive response.”
UBA obtains an exparte court order – While the suites are slated for hearing on May 30th, 2019, UBA filed a fresh suit against the energy company. An exparte order obtained by the bank also enabled it to publicly announce the latest petition.