By DAYO ADESULU
This legal case involves multiple injunctive orders issued against the 1st to 4th Defendants (GHL and its directors) regarding their financial transactions and assets, particularly in relation to the $225.8 million debt owed to First Bank of Nigeria (FBN).
Key Injunctions Still in Effect
Despite some orders being discharged, the following orders remain valid:
- Restriction on Fund Transfers
- The 1st to 4th Defendants (GHL and its directors) cannot transfer or deal with funds in their bank accounts up to $225,802,379.69, pending further hearings.
- Banks to Disclose Financial Statements
- All commercial banks and financial institutions in Nigeria (including GTBank, Zenith Bank, UBA, Access Bank, etc.) must disclose the balances of the 1st to 4th Defendants and provide their full account history.
- Disclosure of Oil Production Data
- The 8th to 13th Defendants must submit reports detailing the quantity of crude oil lifted from OML 120 since production began.
- Restriction on Asset Transfers
- The 8th to 16th Defendants and any third parties cannot deal with assets or receivables related to OML 120 without depositing the proceeds into the 1st Defendant’s account at First Bank.
- Freeze on Asset Dissipation
- The 1st to 4th Defendants are barred from selling, transferring, or diminishing any assets, including crude oil stock, insurance policies, shares, receivables, and contracts pledged as loan security.
- Directors’ Assets Also Frozen
- The 2nd to 4th Defendants (directors of GHL) cannot transfer or dissipate any of their personal assets in Nigeria until the court hears the full case.
Court’s Position on Procedural Issues
- The court rejected GHL’s claim that First Bank (FBN) suppressed information regarding an earlier preservative order from Justice Allagoa. The court confirmed that FBN did disclose the order in its affidavit, though it did not attach a copy.
- No punitive costs were awarded against First Bank, contradicting earlier reports.
- The court ruled that FBN’s case is not an abuse of process, as it is distinct from other proceedings previously before Justice Allagoa.
Next Steps
- The case has been adjourned to February 19, 2025, for the Defendants to respond before a final hearing date is set.
- While the Mareva injunction (a freezing order) was discharged, the remaining restrictive orders still stand, preventing the Defendants from accessing or transferring their funds and assets.
Implications
- GHL and its directors remain under financial restriction, unable to move funds or assets.
- Banks and financial institutions must comply with court orders and report account details.
- The oil production data from OML 120 must be disclosed, which could impact the company’s operations.
- The Defendants’ ability to conduct business remains severely limited until the court makes a final ruling.
This case is set to intensify in February 2025, with major financial and legal consequences for all parties involved.
Legal Battle Over $225.8M Debt: Court Maintains Asset Freeze
The legal dispute between First Bank of Nigeria (FBN) and GHL continues, with the court maintaining several injunctive orders against GHL and its directors over a $225.8 million debt.
🔹 Key Orders Still in Effect:
✅ Funds Frozen – The 1st to 4th Defendants cannot transfer or access funds up to $225.8M in Nigerian banks.
✅ Financial Disclosures – All banks & financial institutions must report GHL’s account balances and transactions.
✅ Oil Production Data – 8th to 13th Defendants must disclose crude oil lifted from OML 120.
✅ Asset Lockdown – GHL & its directors cannot sell or transfer stocks, shares, crude stock, or insurance policies.
✅ Director’s Assets Blocked – The 2nd to 4th Defendants (GHL directors) cannot move their personal assets.
Court’s Decision:
🔹 Rejected claims that FBN suppressed information.
🔹 Confirmed FBN’s case is valid, not an abuse of process.
🔹 No punitive costs awarded against FBN.
🔹 Mareva injunction discharged, but other restrictions remain.
Next Hearing: February 19, 2025 – Defendants must respond before a final court date is set.
Impact:
GHL remains financially restricted until a final ruling.
Banks must comply with court orders.
OML 120 oil production data under scrutiny.
Stay tuned for updates on this high-stakes financial and legal battle!
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