TheCable

Stallion Nigeria Limited has denied owing United Bank for Africa (UBA) N156 billion as claimed by the bank.

The company, in a statement on Monday, described UBA’s claim as “entirely false”.

Stallion Nigeria Limited said the only entity within the Stallion Group that had a financing contract with UBA is Stallion Nigeria Limited, and that the company has already repaid the facility it obtained from the bank.

In October 2023, a federal high court sitting in Lagos passed a judgement in favour of UBA.

The court asked the bank to take over the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt, and Kano over an alleged N156 billion debt.

Opposing the order, the conglomerate said “Stallion Nigeria Limited and its affected sister companies named as co-defendants in the suit are vehemently opposing the action of UBA in the federal high court”.

“Most of the companies within the Stallion Group are not in any way affected by the action filed by UBA and neither their assets nor their operations are affected by the lawsuit of UBA,” the statement said.

“As a matter of Nigerian law, a court of law does not assume jurisdiction over any party that is not expressly named as a defendant in an action before it.

“Stallion Nigeria Limited has exercised its right of appeal against the decision of the Federal High Court refusing to set aside the ex-parte orders granted in favour of UBA Plc.”

The company also said the court refused to consider several facts misrepresented and materials concealed by UBA in its ex parte application to the court for the interim order.

“Stallion maintained that upon a proper reconciliation of account, the allegation of indebtedness by UBA is unfounded, as it has, over the period of relationship with the Bank, made several deposits on account, which payments were made despite that it was yet to receive proceeds of the part-financed contract supply to the federal government,” Stallion said.

The company said it was already in discussion and had a firm commitment from the management of UBA to reconcile the account before the bank “surreptitiously” proceeded to court in bad faith.

Stallion also denied the allegation of “dissipating its assets, as the assets are immovable”.

According to Stallion, a combined value together with receivables is “over and above the alleged indebtedness, a fact the court inexplicably downplayed”.

The group said they are already documenting their losses arising from an alleged UBA invasion of their business premises and would pursue the appeal against the ruling of the court.