Court orders bank takeover of Intercontinental Hotel in Lagos

The Federal High Court in Lagos has ordered Skye Bank Plc to take over Intercontinental Hotel over an alleged debt.



The bank said it availed Milan Industries Ltd (the defendant) with facilities in the sum of $29.8million and N3.8billion for the hotel’s construction.

The bank alleged that the facilities were not repaid.

The court granted leave to a receiver-manager appointed by the bank, Kunle Ogunba (SAN), to preserve the defendant’s traceable assets.

The five-star hotel, with 361 rooms, is on Plot 244 and 245 (now 52) Kofo Abayomi Street on Victoria Island in Lagos.

Justice Babs Kuewumi made an interim order granting judicial protection to Ogunba, whose appointment as the receiver-manager was by virtue of a deed of appointment dated November 11, 2016 in furtherance of a deed of legal mortgage.

Justice Kuewumi granted an interim injunction restraining the defendant and its agents from interfering with or obstructing Ogunba in the course of performance of his duties as receiver-manager over the defendant’s charged assets and properties.

The judge ordered all banks and financial institutions as well as other agencies contractually obligated to the Milan Industries to furnish the receiver with details of sums outstanding to the defendant’s credit.

Justice Kuewumi directed the Assistant Inspector-General of Police, Zone 2 and the Commandants of the Nigerian Civil Defence Corps (NSCDC) or their agents where the defendant’s assets may be situated, to assist the receiver/manager in performing his duties.

“The plaintiff shall file an undertaking to indemnify the defendant should it turn out that this order ought not to have been made,” the judge added.

The bank said it also raised an overdraft facility of N500million “to urgently fund payments to contractors and importation of material required for completing the hotel project.”

As security, the defendant executed a deed of legal mortgage in favour of the bank with the 361-room five star hotels as collateral.

Skye Bank said it was left with no choice than to appoint a receiver/manager in line with the registered deed of legal mortgage.

The case has been adjourned till May 17.