Skye Bank Takes Over Obat Oil’s Depot Over N2.1b Debt

Click for Full Image Size
Listen to article

SAN FRANCISCO, November 11, (THEWILL) – Skye Bank Plc has sealed up Obat Oil and Petroleum's depot at H.I.M. Oba (Dr.) F.E.O. Akinruntan Close, Beachland Estate, Apapa, Lagos, over an alleged N2.1billion debt.

Both parties have been embroiled in a legal battle as Skye Bank sought to recover a loan debt of N2, 142,462,572.26 owed it by Obat Oil and Petroleum.

The loan was guaranteed by His Imperial Majesty, Oba (Dr.) Frederick Eniti Akinruntan.

The bank sought to recover the 15 per cent interest on the amount from April 2014 till the liquidation of the debt.

The case was taken before an arbitrator, Aare Afe Babalola (SAN), during which Obat Oil and Dr. Akinruntan appealed for concessions and waivers on the amount of accrued interest, fees and commissions.

The Arbitrator awarded N1, 406,944,352.76 to the claimant, which represents the amount the respondents admitted as being the outstanding balance as at March 31 with a 10 per cent interest annually from the April 1l, 2014, till final liquidation of the amount.

The bank, however, alleged that Obat Oil and Dr Akinruntan failed to comply with the Arbitration Award and applied to the Federal High Court in Lagos seeking to order the award's enforcement.

In his ruling, Justice Jude Dagat issued an order directing Skye Bank Plc to take over Obat Oil and Petroleum Limited's depot granting Skye Bank leave to enforce the Arbitration Award against the respondents.

He also ordered that the Inspector-General of Police, the Assistant Inspector-General of Police, the Lagos Commissioner of Police as well as the court's Deputy Sheriff to assist in the enforcement of the order.

Story by Oputah David