Why UBA Takes Over Borini Prono Assets

LAGOS – The United Bank for Africa (UBA) has taken over the assets of Borini Prono (Nig) Ltd in execution of an N831,024,818.30 judgment debt of the Federal High Court in Lagos.

Sheriffs of the court, protected by armed policemen, executed the judgment at Borini Prono’s offices in Lagos in liquidation of the debt.
The Bank, through its appointed Receiver Manager, took possession of all the firm’s assets in accordance with the August 28, 2020 judgment of Justice Rilwan Aikawa in suit FHC/L/CS/2723/2019.

The judgment, reads in part: “The parties agrees that if the fixed outstanding sum of N831,024,818.30 remains unpaid in full, on or by the 30th of September, 2022, the concession herein granted by the 1st Plaintiff in respect of the entire indebtedness as per interest, shall be revoked and the indebtedness of the Defendant shall be as if there was no concession at all and in which case, the Plaintiffs shall be at liberty to pursue the entire indebtedness, and accordingly shall be at liberty to deal with the Defendants Assets in any manner(s) recognised by law and/or under the Deed of All Assets Debenture dated 6th of May, 2014, without further recourse to the Defendant or the Court.

“However, if a portion of the fixed outstanding sum of N831,024,818.30 is settled on or before the 30th of September, 2022, the Defendant shail only be liable to pay interest in respect of the outstanding sum.

In a statement signed by its lawyer, Mr. Temilolu Adamolekun, the Bank said it “commenced an action with Suit Number FHC/L/CS/1723/2019, against Borini Prono in the year 2019, just before the latter commenced the rehabilitation of the 3rd Mainland Bridge.

“The Receiver Manager appointed by UBA took possession of all the assets of Borini Prono, but upon the intervention of the Minister of the Federal Ministry of Works and Housing, Mr. Babatunde Raji Fashola, parties entered into Terms of Settlement and adopted same on the 28th of August, 2020.

“Consequent upon the Terms, the Receiver released the assets in his possession and Borini Prono could commence the execution of the contract on the 3rd Mainland Bridge.

“The assets in possession of the Receiver was what initially delayed the commencement of the rehabilitation of the Bridge, even when the Federal Ministry had announced the date of the commencement.”

It said, due to the intervention of the Minister, UBA was inclined to resolve the matter with Borini Prono by entering into Terms of Settlement.

The statement added: “By the said Terms of Settlement, the Judgment Debtor, Borini Prono was expected to liquidate the Judgment sum to the tune of N831, 024, 818. 30 on or before the 30th September, 2022.

“However, the Judgment Debtor, Borini Prono, failed to fully liquidate the Judgment sum, thereby leaving the outstanding Judgment sum to the tune of N586, 024, 818, 30 (Five Hundred and Eighty-six Million Twenty-Four Thousand Eight Hundred and Eighteen Naira Thirty kobo Only).

“As a result of the forgoing, UBA has now enforced the Judgment of the court through the instrumentality of the Court and has on the 28th of October, 2022, taken over all the assets of Borini Prono towards the liquidation of the Debt.”