UBA's N156bn Debt Recovery Case Upheld by Court

The Federal High Court in Lagos, presided over by Justice Daniel Osiagor, upheld the appointment of Romeo Ese Michael as receiver-manager for United Bank for Africa (UBA) Plc (NGX: UBA) in a debt recovery case involving Stallion Group and other defendants. The case, which dates back to October 2023, concerns a claim by UBA that N156.03 billion is owed.

The court affirmed UBA's rights to take possession of the mortgaged property and seek protective orders, while also restraining the defendants from diverting receivables from government agencies. The defendants did not dispute their indebtedness but contested the amount owed.

The court ruled that an account reconciliation exercise did not extinguish the debt and upheld the liability of the guarantors. Additionally, the court dismissed an objection from Barbedos Ventures Limited, stating it failed to establish proprietary rights over the mortgaged property.

UBA's earlier court orders allowed it to take over assets belonging to Stallion Nigeria Limited and affiliates and to freeze their funds across Nigerian banks.