N4.2billion debt: AMCON seeks judgement against Al Kahf Resources owner, Badamasi Sheu

Asset Management Corporation of Nigeria has filed an application before a Federal High Court in Lagos, urging the court to enter  judgement in its favour in the sum of N4,282,918,018.43, against a businessman, Alhaji Badamasi Sheu and his company, Al Kahf Resources Limited. 

In an affidavit in support of an application for summary judgement sworn to by a supervisor with AMCON- Mr. David George, and filed before the court by a Lagos lawyer, Barrister Asama Kadiri, the deponent alleged that sometimes in 2006 Al Kahf Resources Limited approached Oceanic Bank and applied for N500 million to be utilized for the issuance of bank guarantees and overdraft facility for financing the purchase of Petroleum Products from NNPC and other major independent marketers.

The loan request was granted. Prior to accepting the terms of the Bank’s offer letter dated 19th December, 2006, Alhaji Badamasi Sheu issued a Personal Guarantee to the bank in respect of the N500million facility which was granted by the bank to Al Kahf Resources. 

The loan was further secured by a legal Mortgage over the property located at Plot 1145b Victoria Island Layout, Lagos State currently known as No. 1, Mike Inegbese Close off Amodu Tijani Street, Victoria Island Lagos. 

The tenor of the loan facility of N500 million expired without same being liquidated by the defendant as agreed. 

Mr. George alleged further that, till date, rather than repay the loan facility and interest as per contract, the defendants have failed, refused and neglected to liquidate its indebtedness in accordance with the applicable contract and terms of the loan facility availed  to Al Kahf Resources Limited. 

The interest and penalty charges have continue to accrue on the debt and as at 31st March 2019, the total sum N4,282,918,018.43 remain due  and unpaid by the defendants despite several and repeated demands by AMCON. 
Consequently, AMCON is urging the court to issue an order entering summary judgement in its favour.
An order of forfeiture by the court divesting the defendants of their title and rights in respect of the property located at plot 1145b Victoria Island, Lagos. 

The plaintiff is also seeking an order of forfeiture of funds standing in the credit of the defendants accounts held with any commercial bank in Nigeria, the sum of  N40 million as cost for filing to pursue this claim. 

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