Court pledges speedy hearing of alleged sale, transfer of assets of chemical company

The Federal High Court sitting in Abeokuta, the Ogun State capital has declared that it is set to give speedy hearing, on the suits filed by Okhueleigbe Aikpehae of Abraham, Thompsons & Co chambers on behalf of Atlantic Coast Regional Fund (ACRF), bordering on challenging appointed receiver/manager, alleged illegal sale and transfer of assets of Nigerian German Chemicals Plc (NGC PLC)

Penpushing reports that,the Presiding judge, Justice Ibrahim Watila made this known on Friday to all the parties involved in the case,and advised all attorneys in the cases to get ready their processes,
responses to various preliminary objections filed before the next sitting to avoid delay or dragging of the  hearing.

The Atlantic Coast Regional Fund (ACRF), had dragged First Bank of Nigeria(FBN) Trustees Limited, Nigerian German Chemical (in receivership), Bolu Agbaje Akadiri (receiver/manager of NGC Plc), First Bank of Nigeria Ltd, Guaranty Trust Bank Plc, Union Bank Plc, and others over the sale and transfer of assets of Nigerian German Chemicals Plc (NGC PLC) while the substantive suit was still  pending.

Penpushing further reports that,the assets were alleged to have been transferred to Syngen Pharmaceuticals Ltd, Uhuru Capital  Ltd, Capital Alliance Nigeria Ltd, and Brand Ocean Ltd.

The hearing of the contempt application filed by Atlantic Coast Regional Fund (ACRF), could not commence due to preliminary objections filed by counsels to all the respondents, some of who served the attorney to the applicant on  the eve of the sitting.

Penpushing also reports that,the attorney to the applicant, Okhueleigbe Aikpehae, however, was able to serve all counsels to the respondents his responses shortly before the sitting commenced, and .consequently, the counsels sought for time to study the responses.

The presiding judge noted that the contempt application filed by Atlantic Coast Regional Fund (ACRF), praying the court to declare null and void the sale of assets of Nigerian German Chemicals Plc while proceedings were pending, would be given priority in order of hearing of the cases.

The affidavit in support of originating summons filed by ACRF, sometime in  2014, upon Nigerian German Chemicals Plc request for funding to meet its working capital requirements and extinguish certain existing liabilities, the ACRF then, by an Investment Agreement, agreed to invest up to $14 million in the Nigerian German Chemicals Plc by providing a bridge facility and subscribing for up to N670,833,333 ordinary shares  representing 43 percent of the authorized share capital of the company after its Private Placement.

The authorized share capital of the NGC PLC at this time was 200,000,000 made up of 400,000,000 ordinary shares of 50k each. The issued share capital of the company is 153,786,012 ordinary shares of 50k each.

Penpushing reports that,it was a term of the investment agreement between the ACRF and the NGC PLC, that the ACRF’s investment of $14,000,000 would be in two tranches; the Loan and the Private Placement and in furtherance of this agreement, the sum of $6.5 million was invested by the ACRF in the NGC PLC, which said sum was for  the charged ownership of 76,837,229 fully paid up ordinary shares representing 49.96 percent of the  issued and paid up share capital of the NGC PLC.

Meanwhile, the judge therefore adjourned hearing of all the cases to July 17, 2020.