Obat N5bn debt: Court rules on hotel sale request Nov 30

THE High Court of the Federal Capital Territory, Abuja, will on November 30 deliver judgment on an application filed by Ecobank Plc seeking an order authorising it to sell an Abuja hotel belonging to Obat Oil and Petroleum Limited.

Justice Hassan Babangida fixed the judgment date after parties to the suit made their final submissions on Thursday.

The bank claimed in its suit filed on October 18, 2019 that it had reached an agreement with Obat Oil, which is owned by a popular monarch, the Olugbo of Ugboland in Ilaje Local Government Area of Ondo State, Oba Fedrick Akinruntan, to sell the hotel, to offset the company’s N5bn debt.

The hotel, Febson Hotels & Malls, is located at Plot 2425, Herbert Macaulay Way, Abuja.

Ecobank’s lawyer, Mr Kunle Ogunba, said the agreement between it and the firm to sell the hotel to offset the N5bn debt was adopted by the High Court of Lagos State as a consent judgment delivered on March 15, 2017.

He said the bank and Obat Oil signed a memorandum of understanding on November 27, 2019 to give effect to the content of the letter.

He said company reneged on its promise to sell the hotel or pay the N5bn debt as contained in both the November 16, 2019 letter and the November 27, 2019 MoU, both of which were presented in court as exhibits.

He urged the court to grant his client’s prayers and not to be swayed by technical arguments canvassed by Obat’s legal team.

But responding, Obat’s lawyer, Ojo, urged the court to dismiss the suit.

Justice Babangida fixed November 30 for judgment.