Supreme Court Orders Honeywell To Pay Ecobank N5.5 Billion Loan
The Supreme Court has ordered Honeywell and its sister entities Siloam Global Ltd, and Anchorage Leisures Ltd to repay their loan of N5.5bn to Ecobank. Tijani Abubakar who led the five-member panel affirmed that Honeywell Flour Mills Ltd, Siloam Global Ltd, and Anchorage Leisures are all indebted to Ecobank.
It could be recalled that on August 6, 2015, Honeywell, Siloam Global Ltd, and Anchorage Leisures sued Ecobank before a Federal High Court in Lagos State for N5.5 loan repayment. The companies argued that N3.5 billion was paid to settle the outstanding of N5.5, and as such, they are no longer indebted to Ecobank.
The companies also urged the court to demand a letter of discharge for them and get their loan collateral released. They also requested the bank to update their current status on the Credit Risk Management System Portal of the Central Bank of Nigeria, that they are no longer indebted to Ecobank.
Ecobank in its defense stated that on July 22, 2013, the bank and the companies in question reached an agreement that N3.5 billion should be paid by the companies in terms of N500 million as soon as possible and N3 billion balance should be paid before the Central Bank of Nigeria Examiners exist from Ecobank’s offices. But the agreement between the bank and the companies was breached as
Honeywell and its sister companies did not make the payment within the period of 6 months as agreed but instead requested to pay the balance in installments for a period of one year and 6 months. However, in a judgment by Emmanuel Agim, the Supreme Court interpreted the Court of Appeal verdict that Honeywell Flour Mills, Siloam Global Ltd, and Anchorage Leisures are still indebted to Ecobank.
