Business

Stanbic IBTC denies acting against court order in faceoff with Ascon Oil

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2 years ago

November 10, 2022

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Stanbic IBTC has denied acting against a court order in its faceoff with Ascon Oil Company Limited over an indebtedness of N2,465,914,688 and $59,260.94.

A group called Concerned Downstream Oil & Gas Industry Stakeholders had authored an article in The Guardian Newspaper on Wednesday, November 9, 2022, titled “Stanbic IBTC Bank Contempt and Deliberate Sabotage of Judicial Process”.

The bank in its rejoinder said Ascon had defaulted in its debt owed to the lender N2,465,914,688 and $59,260.94 as of May 11, 2020. In a bid to recover the debt, Stanbic approached the Federal High Court through a receiver, Olawale Akoni SAN, to obtain an order to seize the property tendered as collateral for the loan.

Ascon’s petrol filling station at Block 36, Admiralty Way, Lekki Peninsula Scheme 1, Eti-Osa Local Government Area, Lagos State, was seized by Stanbic IBTC, and handed over to Rain Oil.

However, following a court ruling in favour of Stanbic IBTC after Ascon approached the court to set aside the order, the oil company allegedly took matters in its hands on August 13, 2021, and recovered the petrol station through “an illegal act of self-help, willful destruction and illegal takeover of property, led some thugs and unauthorized law enforcement officers to the subject property and unlawfully took over the property.”

The statement read: “Our client advanced several credit facilities to Ascon and Ascon serially defaulted in repaying the facilities. As of 11th May 2020, Ascon’s outstanding indebtedness to our client stood at the sum of N2,465,914,688 (two billion, four hundred and sixty-five million, nine hundred and fourteen thousand, six hundred and eighty-eight Naira) and USD$59,260.94 (fifty-nine thousand, two hundred and sixty Dollars, ninety-four Cents) with interest accruing daily.

“Due to Ascon’s failure to repay its indebtedness, Stanbic appointed Mr. Olawale Akoni SAN (“the receiver”) as a Receiver over the petrol filling station at Block 36, Admiralty Way, Lekki Peninsula Scheme 1, Eti-Osa Local Government Area, Lagos State (“the property”) used as security for the loan, pursuant to its powers in the deed of legal mortgage it executed with Ascon.

“Consequently, the Receiver approached the Federal High Court in Suit No. FHC/L/CS/567/2020 Olawale Akoni SAN v. Ascon Oil Company Limited, where he obtained an Order on 15th May 2020, directing the men and officers of the Nigerian Police Force to offer protection to the Receiver, to take over possession of the property used as security for the loan facilities.

“The Receiver in the company of the men and officers of the Force, executed the said Order on 20th May 2020, as he peaceably took over possession of the property and handed the same over to Stanbic who assigned its ownership to Rainoil Limited at the material time.

“Stanbic thereafter instituted an action before the High Court of Lagos State in Suit No. LD/6965GCM/2020: Stanbic IBTC Bank Plc v Ascon Oil Company Limited to recover the balance of the sum owed to it by Ascon, whose debt continues to accrue interest on a daily basis.

“Ascon applied to the Federal High Court to set aside the Order made in favour of the Receiver on 15th May 2020. However, in the Court’s ruling of 24th July 2020, the Court affirmed that the actions of the Receiver taken pursuant to the Order of the Court directing police protection is valid and thus refused to set aside the Order or any actions or steps taken pursuant to the Order.

“Ascon immediately appealed this ruling to the Court of Appeal vide a notice of appeal dated 5th August 2021 and is requesting that the ruling of the Federal High Court be set aside. There is nowhere in the Court Orders of 15 May 2020 and 24 July 2020 or any other Court Order whatsoever that grants Ascon or anybody acting on their behalf to take possession of the property/Petrol Filling Station.

“Nevertheless, Ascon, in a brazen display of self-help and disobedience to valid Court Orders, proceeded to the subject’s property on 4th August, 2020 and attempted to take over possession of the property. However, Ascon’s unlawful actions were swiftly repelled. Unsatisfied with its failed attempts at unlawfully retaking possession, Ascon instituted multiple Court actions against Stanbic and reported Stanbic to several regulatory and law enforcement agencies.

“Rather than respect the status quo and await the judicial resolution of the pending suits, Ascon on Friday, 13th August, 2021, in an illegal act of self-help, willful destruction and illegal takeover of property, led some thugs and unauthorized law enforcement officers to the subject property and unlawfully took over the property, despite the pendency of a Court Order. Ascon thereafter mischievously rebranded the name of the Petrol Station from Ascon to Quest Oil.

“In Order to perpetuate and surreptitiously legalize its unlawful takeover, Ascon on Friday, 20th August 2021 obtained an Order from the Lagos High Court in Suit No. LD/8029GCMW/2021 – Ascon Oil Company Limited v Rain Oil Limited mandating that the parties maintain status quo. Stanbic is not a party to this suit nor was it named in the said Order.

“It is imperative to add that Ascon has never denied its indebtedness to Stanbic. Unfortunately, and contrary to the impression created in the malicious publication, Ascon has not made any offer for amicable settlement of the dispute or submitted any proposal to Stanbic for the repayment of its protracted debt, which continues to accrue interest on a daily basis. Rather, Ascon has characteristically challenged the quantum of the debt.

“In Order to determine its indebtedness to our client, Ascon filed an application in Suit No: FHC/L/CS/618/2020 Ascon Oil Company Limited vs. Stanbic IBTC Bank Plc, wherein, Honourable Justice I. N Oweibo of the Federal High Court, Lagos appointed Deloitte to conduct a forensic audit Ascon’s account with Stanbic and confirm Ascon’s outstanding indebtedness to Stanbic.