N7bn Debt: Court Fixes Hearing Of Union Bank’s Suit Against Swift Networks To May 10

Justice Daniel Osiagor of a Federal High Court, has fixed May 10, 2024 for hearing of all pending applications, including possible out-of-court settlement in the suit filed by Union Bank against Swift Networks Limited over alleged N7, 037, 410, 548. 23 billion indebtedness.

Justice Osiagor fixed the date following inability of counsel to the parties in the suit to agree on mode of settlement.

While Mr. Kunle Ogunba (SAN), who led Barrister Temilolu Adamolekun appeared for Union Bank, Chief Ajibola Aribisala (SAN) appeared for Swift Networks Limited.

At the resumed hearing of the matter today, Ogunba (SAN) informed the court that his client had done everything possible to resolve the matter but the defendant was not amiable to the settlement.

He therefore urged the court to adjourn the matter for hearing of all pending applications.

Also lawyer, to the Defendant, Chief Aribisala (SAN) informed the court that the defendant is willing to pay it’s debt but the Plaintiff has not agreed to the settlement.

Consequently, Justice Osiagor urged lawyers to both parties to explore amicable settlement.

Union Bank (Plaintiff/Applicants), in the suit marked FHC/L/CS/1366/2023, stated that 

in the course of the bank/customer relationship, the plaintiff agreed to grant various credit facilities to Defendant for several purposes.

The plaintiff stated that, the defendant failed to meet its repayment obligation(s) to it, but, by its letter of 9th November 2017, it requested that its debt be restructured by the Union bank.

Consequently, the plaintiff granted the defendant’s Application for a restructure and further availed it with other credit facilities. Hence the offer letter of 29th December 2017.

Union bank further stated that the defendant failed to perform its repayment obligation arising from the offer letter of 29th December 2017.

The plaintiff/applicants averred that owing to defendant’s failure in meeting up with its repayment obligation, it further restructured defendant’s indebtedness to it by its offer letter of 28th September 2020.

It added that “Under the offer letter of 28 September 2020, the plaintiff availed defendant with a term loan facility to the tune of N7, 674, 292, 000.00 billion.

“It is also the clear agreement of parties that the source of repayment shall be from the cash flow from Defendant’s business operation and other cash flow sources available to Defendant.

“To plaintiff’s bewilderment, the facilities matured without the expected receivables as defendant failed to meet its repayment obligation to Plaintiff under the offer letter of 28th September 2020 which was duly accepted by Defendant.

“It is also the clear agreement of parties that any breach of the terms of the offer letter shall constitute a default and that the entire indebtedness of the Defendant shall immediately become due and payable upon such default.”