The Federal High Court in Lagos has upheld United Bank for Africa Plc’s appointment of a receiver/manager to recover an alleged N156.03 billion debt owed by Stallion Group, reinforcing the bank’s right to enforce securities provided for the credit facilities.
In a judgment delivered on Friday, Justice Daniel Osiagor upheld the mortgage arrangements used to secure the loans and affirmed the bank’s authority to enforce its interests over properties pledged against the facilities. The court also restrained the defendants from diverting payments owed to them by government agencies, a measure intended to protect funds that could contribute to debt recovery.
The judge noted that the defendants did not dispute their indebtedness to UBA but challenged the amount being claimed. The court nevertheless upheld the liability of the guarantors and confirmed the appointment of Romeo Ese as receiver/manager.
Under the ruling, Ese is authorised to take possession of the mortgaged properties and seek protective orders to preserve the assets. The decision supports the bank’s efforts to safeguard the properties and other interests connected to the disputed facilities while the recovery process continues.
Justice Osiagor also held that the reconciliation of accounts between UBA and the defendants did not extinguish the underlying debt or invalidate the bank’s right to enforce its security. The court’s position means that reconciling the figures between the parties, in itself, was not sufficient to remove the bank’s rights under the mortgage arrangements.
In another aspect of the case, the judge dismissed an objection by Barbedos, the 12th defendant, which challenged the mortgage arrangements. The court held that the company had failed to establish a proprietary interest in the mortgaged property.
The dispute dates back to October 2023, when UBA secured interim court orders to enforce its securities over assets belonging to Stallion Nigeria Limited and subsidiaries within the wider group. The properties covered by the dispute reportedly include industrial and commercial assets in Lagos, Port Harcourt and Kano.
UBA had alleged that Stallion Group owed approximately N156.03 billion, leading to litigation involving several companies within the conglomerate and their guarantors.
The latest judgment upholds the bank’s enforcement measures and restricts the defendants from diverting specified receivables from government agencies. It also clarifies the court’s position on the continued validity of the securities despite the account reconciliation process.
Deborah Adeyefa
