Nestoil Limited’s corporate offices in Victoria Island, Lagos have been taken over by a receiver after the Court of Appeal issued a restorative injunction. Police moved into the building on Monday to enforce the order.
The takeover follows a long dispute over debts reported to be about two billion dollars. Nestoil and its sister company, Neconde Energy Limited, had earlier secured a high court order asking the receiver to halt action. Their lenders, FBN Merchant Bank and First Trustees, later returned to the Court of Appeal with a motion filed on November 26. Justice Yargata Nimpar granted their request and set December 4 for the hearing of the motion on notice.
A separate ruling of the Federal High Court on October 22 had already allowed First Trustees and FBNQuest Merchant Bank to take control of the company’s assets. The court listed more than one billion dollars and over four hundred billion naira as the outstanding debt, along with additional sums personally guaranteed by the company’s promoter.
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