EcoBank Plc has intensified its legal battle to recover outstanding debts, seeking a court order to freeze over 6.3 billion shares of FBN Holdings, currently held by Barbican Capital Limited, a company linked to Otudeko Obafemi Adedamola, son of prominent businessman Oba Otudeko. The bank alleges that these shares were acquired using funds that should have been used to settle a long-standing debt owed by Honeywell Flour Mills of Nigeria Plc.
The legal action, filed at the Federal High Court in Lagos, is rooted in a Supreme Court judgment that affirmed Honeywell and Siloam Global Services Limited’s indebtedness to EcoBank. The bank, represented by Kunle Ogunba (SAN), argues that the Otudeko entities are attempting to circumvent this judgment by divesting assets and using the proceeds to invest in FBN Holdings.
“By virtue of the Supreme Court judgment in Suit No. SC/CV/210/2021, dated January 23, 2023, which affirmed Honeywell and Siloam’s indebtedness to the plaintiff, the plaintiff is entitled to reap the benefits of its success at the apex court,” Ogunba stated in the court filings.
EcoBank’s motion seeks an interim injunction to prevent the defendants, including Otudeko, Barbican Capital, Honeywell, and the Corporate Affairs Commission (CAC), from “amortizing, dematerializing, compromising, selling, transferring, or otherwise dealing with” the FBN Holdings shares. The bank also seeks to rectify FBN’s register of shareholders to reflect EcoBank as the rightful owner of the disputed shares.
This legal tussle dates back to 2015, when EcoBank claimed Honeywell owed N5.5 billion. While Honeywell maintained it had fully settled the debt, the Supreme Court’s 2023 ruling validated EcoBank’s claim.
Read Also: From FirstBank to First HoldCo: A New Chapter for Nigeria’s Banking Giant
“Barbican (1st defendant) is an affiliate company of Honeywell and is using the funds realized from the divestment of Honeywell to acquire 6,314,116,229 (15.08%) shares in FBN Holdings, thereby using funds that should have been used to settle Honeywell’s indebtedness to the plaintiff,” Ogunba argued.
Justice Deinde Dipeolu, presiding over the case, has ordered the respondents to show cause within seven days why the injunction should not be granted. The case has been adjourned to April 15, 2025, for further hearing.
The implications of this legal battle extend beyond the involved parties, potentially impacting investor confidence in FBN Holdings and the broader Nigerian Stock Exchange (NGX). The court’s decision will be closely watched by financial analysts and stakeholders.
The ongoing legal dispute highlights the complexities of corporate debt recovery and the importance of upholding judicial rulings. For individuals and businesses alike, this case underscores the need for transparent financial practices and adherence to legal obligations. As this situation develops, it is clear that the final outcome will have significant ramifications within the Nigerian financial sector.
