Bankers Warehouse begins engagement with FCMB to resolve N4bn debt dispute

Bankers Warehouse (BW) Limited, a Nigerian cash management company, is engaging with First City Monument Bank (FCMB) to resolve its debt dispute with the financial institution, TheCable understands.

The move is the latest development following the recovery of the company’s assets by the lender.

On November 13, the FCMB took possession of properties and assets belonging to BW, Vandt Investment Limited, and Victor Hammond due to an alleged debt of N4.4 billion owed to the bank.

The assets, recovered following a court order, were reportedly used as collateral for loans extended by FCMB and guaranteed by Hammond — BW’s board chair.

Among the secured assets is a landed property at No. 15 Korimu Kotun Street, Victoria Island, Lagos, registered under land certificate No. LO 7649 and subject to a tripartite legal mortgage deed dated April 14, 2013.

A property at 12C Bompai Road, Kano state, which holds a certificate of occupancy, along with a registered deed of assignment dated June 8, 2010, and a legal mortgage deed dated May 24, 2013, was also seized.

Sources with knowledge of the development said Bankers Warehouse had complied with payments this year and does not “deny the outstanding obligation”.

TheCable was told that the company is “offering various solutions” to the bank to ensure the outstanding obligation is positively impacted towards “reducing the outstanding loan”.

This position is based on the “high growth” the company reportedly attained recently and launched the “first bank neutral cash hub” to serve the clients of banks, retailers, and wholesalers.

According to an insider, between the offers made (which were not disclosed), the bank, and other capital injection actions, the company expects that the “imbroglio will be resolved without any huge negative impact on the industry being the largest private sector investor in the cash solutions business”.

He acknowledged that the bank has always been supportive, noting that financial institutions are generally under pressure as a result of certain regulatory pronouncements.

However, he said Bankers Warehouse’s position makes it central to cash activities in Nigeria, hence, “certain policy pronouncements impact us atimes”.

TheCable learnt that BW had faced significant headwinds due to the COVID-19 pandemic and the naira re-design policy, which “directly impacted” its business activities as a fully integrated cash-solution provider.

“…but we have built a more robust model that diversifies our reach beyond the traditional activities,” the source said.

He added that the business has significantly improved “with superior margins, leading to accelerated payments toward obligations over the past year”.

The source expressed belief that FCMB is aware of the above progress, saying Bankers Warehouse is willing to engage with the intention to come to a mutually beneficial position.