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Nova Merchant Bank Limited, a leading financial institution, has initiated legal proceedings against Midwestern Oil & Gas Company Limited, a petroleum company, for an alleged unpaid debt of N1,648,649,286.68 billion. The petition, filed at the Lagos Federal High Court under case number FHC/L/CP/2641/2023, aims to seek the winding-up of Midwestern Oil & Gas Company Limited.
The petition is based on Sections 571(D) of the Companies and Allied Matter Act 2022, Rules 4, 19, 20, and 184 of the Companies Winding-Up Rule 2001, and the court’s inherent jurisdiction. Nova Merchant Bank Limited, represented by Oluwakemi Balogun (SAN), is seeking court orders to advertise the winding-up petition in the Federal Government Official Gazette, a national daily newspaper, and other newspapers circulating in Lagos State.
The grounds for the petition include Midwestern Oil & Gas Company Limited’s failure to liquidate its debt despite statutory notices and demands. The bank asserts that the advertisement of the winding-up petition is essential for notifying interested parties in compliance with the Companies Winding-Up Rules 2001.
Tomilola Onasanya, a Principal Officer at Nova Merchant Bank Limited, provided an affidavit outlining the background of the case. According to the affidavit, Midwestern Oil & Gas Company Limited, a registered limited liability company in Nigeria’s oil and gas sector, received a credit facility of N3 billion from Nova Merchant Bank Limited. The petitioner extended the credit facility due to Energy Link Infrastructure Limited’s inability to repay the loan.
Despite several demand letters and the issuance of a statutory demand letter on November 28, 2023, Midwestern Oil & Gas Company Limited has allegedly failed to honor its obligations. The outstanding debt is now at N1,648,649,286.68 billion, with accrued interest. Nova Merchant Bank Limited contends that the winding-up petition is necessary to protect its interests and recover funds for its depositors.
No hearing date has been set for the petition, and Nova Merchant Bank Limited awaits the court’s decision on its application for leave to advertise the petition. The bank emphasizes that the legal action is taken in the interest of justice and to safeguard depositors’ funds.