Innoson’s Commonsensical Lifeline To Save GTBank, ‘Convert The N8.8bn Debt Into Shares For Us’

The Oasis Reporters

April 9, 2019

While Nigeria’s number one digital bank has been running from pillar to post trying to thwart or get out through a negotiated settlement from the judgement debt imposed on it as a punitive measure over their maltreatment of the financial account of Chief Innocent Chukwuma, an exit route has been compassionately offered by the victim of EFCC brutality allegedly sponsored by the besieged bank.

Innoson Nigeria Ltd has asked the bank to convert the judgement debt to shares in the bank.

“Based on the foregoing and in furtherance of the letter to GTB by Counsel to Innoson Nigeria Ltd, McCarthy Mbadugha & Co on March 25th, 2019 that it pays the N2.4B Judgment debt to Innoson Nigeria Ltd with the accrued interest of N6,717,909,849.96, Innoson Nigeria Ltd therefore demands from GTB that if it’s banking operation will be seriously and adversely affected, and its capital base eroded as a result of the N8.8bn judgment debt, that it should as a matter of utmost urgency convert the said sum or part of it into shares and allot same to Innoson Nigeria Ltd. This will save taking it over in the manner Innoson is doing.”

Chief Innoson Chukwuma, MD, Innoson Nigeria Ltd.

Innoson Motors Limited in Nnewi has advised Guaranty Trust Bank (GTB) to stop deploying more resources into stopping the execution of the court order made against it.

The motor company said the refusal, last Friday, of the Federal High Court sitting in Ibadan to hear or grant the bank an injunction to restrain Innoson from continuing to levy execution against it is a clear indication that the bank had nothing more to do.

One of Innoson’s flagship vehicles, the IVM .

Speaking about the case on Monday, Cornel Osigwe, Public Relations Officer of Innoson, advised the bank to convert the debt into shares for Innoson rather than engaging in wasteful and desperate means to prevent the execution of court’s verdict.

“GTB’s bid to stop Innoson from taking it over nosedived last week Friday, April 5th, 2019 as the Federal High Court sitting in Ibadan refused to hear or grant it an injunction to restrain Innoson from continuing to levy execution against it; the court also refused to stay execution,” he said.

“Despite the decision of the Supreme Court on February 27th 2019 dismissing the appeal by Guaranty Trust Bank (GTB) and affirming thereby the concurrent judgment of Court of Appeal, Ibadan division and Federal High Court Ibadan which ordered GTB by way of Garnishee Order Absolute to pay Innoson Nigeria Ltd the sum of N2.4 Billion with a 22% interest, per annum, on the judgment sum until the final liquidation of the judgment debt, the bank is yet to comply with this order.

“In order to stop Innoson from continuing with taking over its assets in execution of the aforesaid judgment GTB approached the Federal High Court, Ibadan on Friday, 5th April, 2019 and requested the court, through a motion, to stay execution and or for an injunction restraining Innoson from continuing with executing a judgment which the Supreme Court has affirmed when it dismissed the GTB’s appeal against the Court of Appeal’s decision affirming the High Court’s judgment and order in favour of Innoson.

“We have previously stated that in a garnishee proceedings, once an order of garnishee nisi is made, the garnishee is required by law to set the amount involved aside and will not allow the judgment debtor to withdraw from it; and if the order is made absolute, the garnishee pays the money to the judgment creditor and incurs no liability for doing that but if the order is not made absolute the garnishee returns the money to the judgment debtor.

“It will be recalled that the order was made absolute since 29th July 2011 and GTB held unto the money from that time and is using it for its business. It follows that by the time the order was made absolute it was no more the judgment debtor’s money but rather that of Innoson Nigeria Ltd who is the judgment creditor; if a garnishee refuses to comply with the order, then, it becomes a judgment debtor, as GTB has become in the present case, against whom execution of the order will issue.

Innoson Nigeria Ltd is aware that GTB had earlier deposed to an affidavit in the court that its banking operation will be seriously and adversely affected, and also its capital base eroded if it complies with the order of the court.

“Based on the foregoing and in furtherance of the letter to GTB by Counsel to Innoson Nigeria Ltd, McCarthy Mbadugha & Co on March 25th, 2019 that it pays the N2.4B Judgment debt to Innoson Nigeria Ltd with the accrued interest of N6,717,909,849.96, Innoson Nigeria Ltd therefore demands from GTB that if it’s banking operation will be seriously and adversely affected, and its capital base eroded as a result of the N8.8bn judgment debt, that it should as a matter of utmost urgency convert the said sum or part of it into shares and allot same to Innoson Nigeria Ltd. This will save taking it over in the manner Innoson is doing.”

Interestingly, the bank with a south west Nigeria footprint, and judges deciding the case in favor of the auto company from the south east, goes far to express the impartiality of the judgement, according to a commentator from Ibadan.

“This window opened by Innoson Nigeria Ltd ought to be embraced with both hands, no matter how the bank may feel about having them as shareholders. An action caused by the seeming recklessness in overcharging Innoson, and at the same time, turning the Economic and Financial Crimes Commission, EFCC operatives loose on the innocent family members of Chief Innocent Chukwuma”, another Nnewi based commentator said to us on the phone.

Additional Source : Sahara Reporters

Greg Abolo

Blogger at The Oasis Reporters.

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