FBN: Why banks can't comply with order lifting restrictions

First Bank Nigeria Plc has dismissed the claim that banks had lifted lien on the accounts of General Hydrocarbons Limited (GHL) as reported last week.

GHL had, 24 hours after the Federal High Court sitting in Lagos lifted Mareva order earlier placed, stated that banks had complied with the order by lifting the restrictions on its assets and accounts as well as that of its directors and stakeholders.

Reacting to this claim, in a statement entiled “Re-misinformation on Mareva Injunction on GHL,” First Bank said compliance to lifting of lien takes a process, which has not been concluded in GHL case.

The bank said apart from this, it had appealed against the lifting of the Mareva order, asking for its suspension, pending the determination of its prayers.

First Bank vowed to use all legal means to pursue the case in order to recover debts owed it.

The bank assured its stakeholders of its commitment to resolving the issue legally, transparently and diligently.

The statement reads: “Our attention has been drawn to recent media reports suggesting that some banks have begun complying with the ruling of Honourable Justice Deinde Dipeolu of the Federal High Court, Lagos which lifted the Mareva order placed on the assets of General Hydrocarbons Limited (GHL), its directors, and shareholders.

“We would like to state that such action is premature, as the necessary steps for banks and stakeholders to comply with the court’s decision have not yet been completed.

“Notwithstanding the above, First Bank has also appealed against the discharge of the Mareva order and applied for an injunction and/or suspension of the discharge order pending the determination of the appeal. In view of the pending appeal and Motion for Injunction, banks are expected to maintain the status quo.

“FirstBank remains committed to protecting the interests of its shareholders, depositors, and stakeholders. We will continue to pursue all available legal avenues to recover unserviced debts from debtors, ensuring that those who have defaulted on their obligations are held accountable.

“We wish to seize this medium to assure all our valued stakeholders that FirstBank remains strong, stable and fully committed to resolving this issue in line with the provisions of the law. We are actively addressing all matters at hand with transparency and diligence, while remaining focused.”

First Bank had accused GHL of unpaid debt of $225.8 million, the outstanding balance on loans extended for oil mining operations. The bank said it fulfilled its obligations under the loan agreements, while accusing GHL of lack of transparency and good governance.