- High Court issues Mareva Order against Integrated Energy Distribution and Marketing Company Ltd
- UBA filed the lawsuit against Integrated and Polaris Bank
The United Bank for Africa (UBA) has been awarded a Mareva injunction by a Lagos High Court in its lawsuit against Integrated Energy Distribution and Marketing Company Ltd and Polaris Bank. In the lawsuit with suit number FHC/L/CS/714/21, Justice Daniel Osiaigor issued the Order preventing the Defendants from accessing funds domiciled in standing to their credit up to $6,759,000 (about N2.8 billion) or its equivalent in any currency in 25 banks, the Debt Management Office and Federal Ministry of Finance.
Integrated Energy Distribution and Marketing Company Ltd, which won the bid to acquire a 60% stake in the Ibadan and Yola Electricity Distribution Companies following the privatisation exercise of the Power Holding Company of Nigeria (PHCN) Assets had applied to and received a $162,400,000 loan from the plaintiff and other lenders. Accordingly, UBA disbursed the sum of $35 million Integrated Energy.
Due to the insurgency in the North-East, the Defendant was unable to meet the loan conditions and subsequently invoked the Force Majeure Clause of its Contract. The Federal Government, in March 2020, paid the final instalments of the refund (recovered sum) to the energy firm and Polaris Bank. “However, the remaining tranche of the Plaintiff’s share of the said recovered sum has since been withheld by the Defendants, particularly the 2nd Defendant,” UBA told the judge.
The court adjourned till July 13th for a hearing of the motion on notice.