N13.5bn debt: AMCON takes over Babalakin’s property

Category: Business Published on Monday, 11 February 2013 06:00 Written by Idris Ahmed

The main entrance of one of the sealed properties at No 43A Afribank Street, Victoria Island, Lagos.

The Asset Management Corporation of Nigeria (AMCON) has taken over property belonging to a Lagos businessman and lawyer, Wale Babalakina, over the alleged N13.5 billion debt.

Daily Trust learnt that a detachment of armed policemen and bailiffs of the Federal High Court, Lagos, Friday evening took possession of the property located at 43A, Afribank Street, Victoria Island, Lagos.

AMCON said the action was in execution of interim orders granted by Justice Chukwujekwu Aneke against Roygate Properties Limited, believed to be owned by Babalakin.

The orders were sequel to an ex-parte application filed by the AMCON in a suit marked: FHC/L/CS/1501/2012. Copies of the orders made on February 5 were conspicuously pasted on the gates of the VI house.

Justice Aneke granted AMCON “interim possession of the property at 43A” Afribank Street, pursuant to a tripartite legal mortgage registered on October 14, 2010 between Roygate (the borrower), Stabilini Visioni Limited (surety/mortgagor) and Guaranty Trust Bank (the lender.)

The court also granted AMCON similar possession over properties at Plots 270 and 273 Trans Amadi Layout, Port Harcourt, Rivers state.

The court restrained Roygate, its directors, subsidiaries and sister companies from transferring or dealing with any of its funds in 20 banks listed in the application, or anywhere else up to the N13.5 billion allegedly owed by the company.

Justice Aneke restrained the banks from allowing Roygate to “operate any bank accounts” held by it in the banks.

The court ordered the banks to serve on AMCON lawyers within seven days of the service of the order on them, “an affidavit disclosing the respondent’s (Roygate’s) balance on accounts held with the said banks jointly and severally as at the date of the order.”

Justice Aneke also ordered the Nigeria Police Force to assist in the enforcement of the orders, which he held, should subsist pending the determination of the substantive suit.

Justices Aneke set February 19 as the return date.