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Stanbic IBTC complies with court rulings, pays Longterm N2.5bn damages

Stanbic IBTC Holdings Plc has confirmed the payment of the sum of N2.5 billion to Mr Patrick Akinkuotu and Longterm Global Capital Limited in response to a Supreme Court ruling.

The group informed the Nigerian Stock Exchange and the public that the full payment has been made, after almost 10 years of protracted litigation.

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In a statement signed by the Company Secretary, Chidi Okezie, Stanbic IBTC also assured its stakeholders that the outcome of the litigation will neither ’affect the companys liquidity nor its profitability in the long run.

Recall that in 2010, the Federal High Court was the first to rule in favour of Longterm Global Capital and Patrick Akinkuotu, but Stanbic IBTC Bank went to the Court of Appeal and up to the Supreme Court but was dismissed.

Mr Patrick Akinkuotu and his company (Longterm Global Capital Limited) obtained overdraft facilities worth N600 million and N650 million from the bank between April and July 2007. The facilities were for a term of 365 days with an option of rollover.

Thereafter, Akinkuotu requested that the facilities granted to himself and his company be merged. The request was then obliged by the bank.

The facilities were secured with the equity stakes both Akinkuoto and Longterm Global Capital Limited held in some companies.

 

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