Tue. Apr 20th, 2021

Firm Urges Court To Wind-up BUA Over Alleged Multi-million Naira Debt

Firm Urges Court To Wind-up BUA Over Alleged Multi-million Naira Debt

A logistics firm, Mainland Cargo Options Limited, has approached a Lagos Federal High Court, seeking for an order to wind up BUA Group Limited over alleged failure of the company to offset its debt. 

The firm in a winding up application marked FHC/L/CP/376/21, said the order sought for was due to BUA Group’s inability to pay the sum of N34, 771, 203. 02 million, which was the balance of N44, 771, 203. 02 million, an amount accrued from various logistics services it rendered to the company between September, 2018 to April 2019. 

Mainland Cargo Options Limited stated that at the completion of the said services, the respondent only paid the sum of N10 million, on March 27, 2019, while it allegedly fail to offset the balance of N34, 771, 203. 02 million.

The logistics firm held that despite it several effort, pleading with the company (BUA) to pay the balance, the respondent neglected, refused to pay same or any part thereof for two years.

The petitioner stated the with the above revelation, the respondent (BUA Group) has become insolvent and unable to pay it’s indebtedness amounting to N34, 771, 203. 02 million, for the services rendered for over two years now.

Owing to the above, the patitioner asked the court to declare BAU Group insolvent and unable to pay its debts and also to wind it up.

The firm also asked the court for an order appointing a renowned chartered accounting firm as liquidators of the company.

The petitioner in an affidavit on non-multiplicity of action on the same subject matter deposed to by Damilola Badejo, a litigation Clerk in the law firm of Salawu, Akingbolu & Co, averred that except where otherwise stated, all the facts deposed to in the affidavit were within his personal knowledge, information and believe.

He aveered that, he was informed by one Chinasa Uka, a representative of the petitioner, at their office on March 3, 2021, that there is no multiplicity of action on the subject matter of the suit. Adding that the suit is the only suit file by the petitioner/applicant against the respondent in respect of the subject matter of the suit.

BUA Group is yet to file any response to the suit, while no date has been fixed for its hearing of the suit.