N156bn Debt: Court Upholds UBA’s Receiver Appointment, Bars Diversion of Stallion Group’s Payments
Wale Igbintade The Federal High Court in Lagos has upheld the appointment of a receiver/manager by United Bank for Africa (UBA) Plc to recover an alleged N156.03 billion debt owed
The Federal High Court in Lagos has upheld United Bank for Africa (UBA) Plc's appointment of a receiver/manager to recover a debt of N156.03 billion owed by Stallion Group. Justice Daniel Osiagor affirmed UBA's right to enforce its securities over the properties pledged against the loans and ruled that the defendants did not dispute their indebtedness but challenged the claimed amount.
The court also found the guarantors liable and confirmed Romeo Ese's authority to take possession of the mortgaged properties. Additionally, the court barred the defendants from diverting funds due to them from government agencies to aid UBA's recovery efforts. Justice Osiagor dismissed a challenge to the mortgage arrangements, stating Barbedos, the 12th defendant, had failed to show any proprietary interest in the mortgaged property.
The dispute originated in October 2023 when UBA obtained interim orders to enforce its securities over Stallion Nigeria Limited and its subsidiaries' assets. Stallion Group later disputed the debt amount, claiming it had made substantial repayments and was in discussions with UBA for account reconciliation and restructuring.
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