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Femi Otedola debt mess; Banks threaten to take over properties

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Billionaire Nigeria businessman, Femi Otedola is currently battling five Banks over his huge debt profile , as they have threatened to seize some of his choice properties used as collaterals, if payment arrangement is not guaranteed within the shortest possible time, has learnt.

Otedola owes Zenith Bank N68 Billion, GTBank, 31 Billion Naira, First City Monument Bank, FCMB, 19 Billion Naira, Access Bank N15.526 Billion Naira and UBA N36.862 Billion.

The total debt of Mr. Otedola, the chairman of Zenon Oil is estimated to be about 168 Billion Naira (Over 1 billion US dollars) as at December 2010. The total asset used as security for the debt is said to be worth about N70 billion.

Shares used by Otedola as collaterals for his various loans are: 1.441 Billion Units of Zenith Bank shares 24.813 million Units of MRS Oil 14.163 million Shares of Mobil Oil 159.395 million shares units of AP (African Petroleum) Plc 67.053 million shares unit of AP PLC 1.775 million shares units of MRS Oil 36.4 million shares of AP PLC.

Properties used are: 5, Tiamiyu Savage Street, Victoria Island, Zenon Place, 13, Walter Carrington Crescent, Victoria Island, Zenon Apartment, 12, Temple Road, Ikoyi, Lagos, Zenon Court, 3B, Agodogba Avenue, Parkview Estate, Ikoyi, Lagos, Zenon Jetty, 13, Walter Carrington Crescent, Victoria Island, Lagos, Zenon Diesel Direct Station, 104/106, Apapa, Oshodi Expressway, Lagos, Zenon Diesel Direct Station, Ijesha, Lagos and Zenon Lofts.

Others are: 175,Sani Abacha Way, GRA, Phase II, Port Harcourt, Zenon Gardens, 872, Ozumba Mbadiwe Street, Victoria Island, 8A, Ogalade Close, Victoria Island, Lagos, Blue Waterfront Scheme, Lekki, Lagos, Plot 9, Block 80, Off Emma Abimbola Cole, Lekki, Lagos, 23, Mekunwen Road, Ikoyi, Lagos, Plot 100, Obudu Street, Off Aso Drive, Asokoro, Abuja, Zenon Petroleum Terminal I, Ibafon, Apapa, Lagos, Zenon Petroleum Terminal II, Ibafon, Apapa, Lagos, 18, Ladipo Oluwole Street, Apapa, Lagos, Plot C21, Industrial Road, Amuwo Odofin, Lagos, 1, Madiana Close, Wuse II, Abuja, Zenon Towers, 1, Cooper Raod, Ikoyi, Lagos and Zenon House, 2 Ajose Adeogun Street, Victoria Island, Lagos.

Various sources at the five banks told that the management of the Banks are now fed up with tactics implored by Otedola to deny the banks of the loans he obtained to boost his business empire.

Otedola'a group had headed to a court claiming that the five banks have over inflated the debt he owe, alleging that some of the deductions made by the banks are fraudulent.

But the Banks dismissed his allegation insisting that his properties in highbrow areas in Abuja, Victoria Island, Port Harcourt, Ikoyi and other major towns in Nigeria would soon be seized except the former Billionaire and son of former Lagos State Governor has a concrete plan to pay back all loans.

A source in Zenith Bank said “we are just tired of all his antics and tactics to delay payment of all the loans he collected. We are currently talking with our lawyers on a possibility of going after his properties. I understand other banks he owes are considering the same. We can no longer continue to fold our arms and watch his games.”

Another source in UBA said “yes we have concluded plans to adopt another method in having Otedola pay back his loans. We are aware that he claimed that deductions made so far which are merely the interests on the loans are illegal, so we would now have to compile a list of his properties and take over them if he fails to reach a concrete payment agreement.”