N381.7m Debt: Court Sanctions Appointment Of Receiver/Manager Over Megabolex Quarry

Justice Akintayo Aluko of a Lagos Federal High Court, in the interim, has sanctioned the appointment of Mr. Patrick Mgbeoma of AAA Chambers, as the Receiver/Manager, to one of the largest quarry in Nigeria, Megabolex Quarry Limited, over alleged unpaid debt of N381, 770, 494. 99 million.

Justice Aluko also restrained 24 banks in Nigeria, from dealing in any manner whatsoever with any and all monies and/or whatsoever assets due to the Megabolex Quarry Limited and two other defendants, from any account whatsoever maintained by the Defendants, all accounts linked with their BVN: 22270660964 and 22210515723, their agents, privies or the like with any of the said financial institutions wherever situate up to the sum of N381, 770, 494.99 million, as at July 31, 2023, being the company’s indebtedness accruing from the several Construction Finance Loans granted to it and guaranteed by the other defendants.

The banks restrained from dealing with the company are: GTB Limited; Access Bank Plc, CITI Bank Nigeria Limited, Ecobank Nigeria Plc, Fidelity Bank Plc, First Bank Of Nigeria Limited, FCMB Plc, Globus Bank, Heritage Bank Limited, Jaiz Bank, Keystone Bank Limited, Opay Digital Services Limited, Palmpay Nigeria, Polaris Bank Limited, Providus Bank, Stanbic-Ibtc Bank Nigeria Limited, Standard Chartered Bank, Sterling Bank Plc, Suntrust Bank Limited, Union Bank Of Nigeria Plc, United Bank for Africa Plc, Unity Bank Plc, Wema Bank Plc and Zenith Bank Plc.

The judge further ordered and directed pursuant to Sections 554 and 556 of the Companies and Allied Matters Act and Clause 7 (iv) (a-i) of the Deed of All Assets Debenture dated 22nd March 2022, directing the Mr. Patrick Mgbeoma, being the receiver/manager, to take such steps as may be necessary to realize the assets of the Megabolex Quarry Limited, both fixed and floating, all its undertakings and all other properties and assets including the machineries as stated in schedule of the Deed of All Assets Debenture dated 22nd March 2022. 

The judge also ordered the Inspector-General of Police, the Deputy Inspector-General of Police, Assistant Inspector-General of Police, the Commissioners of Police Lagos and all Police Formations in Oyo State, their Deputies, Assistants and all other officers under their Command, control and supervision to assist the Mr. Patrick Mgbeoma, in securing the assets, properties and undertakings of the Company in receivership, wherever they may be found particularly the 1st Defendant’s Quarry, situate and known as Megabolex Quarry, Orile Village, Ibadan-Ijebu Ode Road, Ibadan, Oyo State and its registered address situate at No. 1B, Adekunle Fajuyi way, GRA, Ikeja, Lagos for the Bailiffs of the Court to protect and assist Mr. Patrick Mgbeoma, to take over full possession of the company, situate and known as Megabolex Quarry, Orile Village, Ibadan-ljebu Ode Road, Ibadan, Oyo State and its registered address situate at 1b, Adekunle Fajuyi way, GRA, Ikeja, Lagos and to force open any gate or door where such gate or door is hindering the Receiver/Manager from taking exclusive possession of all fixtures, fittings buildings, general equipment and machineries etc, thereon which are now under the receivership of the Mr. Patrick Mgbeoma, until he is discharged as the lawfully appointed Receiver/Manager of the Company’s assets, pending the hearing and determination of the motion on notice. 

Justice Aluko made above orders while granting an Exparte motion filed by Mr. Adetunji Adedoyin-Adeniyi, of AAA Chambers, lawyer to AG Mortgage Bank Plc and Receiver/Manager, Mr. Patrick Mgbeoma, who were the first and second plaintiff/applicants in a suit marked FHC/L/CS/1824/2023.

While others listed as Megabolex Quarry Limited co-defendants were; Mrs. Ruth Iyabo Okoh and Mr. Alex Okoh.

In urging the court to grant the orders sought for, counsel to the applicants/plaintiffs, Mr. Adedoyin-Adeniyi, said the orders were pursuant to Section 6 (6) of the Constitution of the Federal Republic of Nigeria 1999, Sections 554 and 556 (1)(2)(3) and (4) of the Companies And Allied Matters Act, 2020 {as amended} and under the court’s inherent jurisdiction.

Justice Aluko after listening to Barrister Adedoyin-Adeniyi, who moved the Exparte motion and 44 paragraphs affidavit deposed to by Patrick Mgbeoma, granted the orders and directed the applicants/plaintiffs to make a publication of the orders in a National Newspaper well circulated in Nigeria. 

The judge also ordered the plaintiffs/applicants to file an undertaking as to damages to indemnify the defendants/respondents, in the event that this Order ought not to have been made. While adjourned to September 28, 2023, for report of Compliance and Hearing of Motion on Notice.