Union Bank Vs Swift Networks: Court Adjourns Hearing
The Federal High Court sitting in Lagos State has adjourned the hearing of an alleged 7 billion naira debt suit filed by Union Bank against Swift Networks. Justice Daniel Osiagor fixed May 10, 2024, for hearing of all pending applications, including possible out-of-court settlement in the suit filed by Union Bank against Swift Networks Limited over alleged N7,037,410,548.23 deb
The date was adjourned for hearing following the inability of Union Bank and Swift Networks to agree on a mode of settlement.
Kunle Ogunba (SAN), leading Temilolu Adamolekun, appeared for Union Bank, while Chief Ajibola Aribisala (SAN) appeared for Swift Networks Limited.
Ogunba told the court on Monday that Union Bank had done everything possible to resolve the matter, but the Defendant (Swift) was not amiable to settlement.
He urged the court to adjourn the matter for a hearing of all pending applications.
On his part, Aribisala informed the court that the Defendant is willing to pay its debt, but the Plaintiff has not agreed to a settlement.
Consequently, Justice Osiagor urged lawyers to both parties to explore an amicable settlement.
Recall that Union Bank (Plaintiff/Applicants) had in a suit FHC/L/CS/1366/2023 stated that
in the course of the bank/customer relationship, Plaintiff agreed to grant various credit facilities to Defendant for several purposes.
Plaintiff stated that Defendant failed to meet its repayment obligation(s) to Plaintiff, but, by its letter of 9th November 2017, it requested that the Plaintiff/Applicant restructure its debt.
The Plaintiff granted the Defendant’s Application for a restructure and further availed it with other credit facilities. Hence, the offer letter of 29th December 2017.
The bank stated that Defendant failed to perform its repayment obligation arising from the offer letter of 29th December 2017.
The Applicants averred that owing to Defendant’s failure to meet its repayment obligation, Plaintiff further restructured Defendant’s indebtedness to it by its offer letter of 28th September 2020.
It added that “Under the offer letter of 28 September 2020, Plaintiff availed Defendant with a term loan facility to the tune of N7,674,292,000.00.
“It is also the clear agreement of parties that the source of repayment shall be from the cash flow from Defendant’s business operation and other cash flow sources available to Defendant.
“To Plaintiff’s bewilderment, the facilities matured without the expected receivables as Defendant failed to meet its repayment obligation to Plaintiff under the offer letter of 28th September 2020, which was duly accepted by Defendant.
“It is also the clear agreement of parties that any breach of the terms of the offer letter shall constitute a default and that the entire indebtedness of the Defendant shall immediately become due and payable upon such default.”
