N7.3Billion Debt: Dana Motors, AMCON Settle Out of Court

In a bid to reach amicable out of court settlement,Dana motors and it’s Chairman Ramesh Hathiramani and AMCON have filed terms of settlement before a Federal high court sitting in Lagos south west Nigeria

   AMCON had sued the Dana  Motors Limited and Ramesh Hathiramani jointly and severally for the following reliefs:

An order of the court against the Defendants herein for the repayment of the sum of N2, 271, 193, 401.59 (Two Billion Two Hundred and Seventy One Million One Hundred and Ninety Three Thousand Naira and Fifty Nine Kobo) comprising principal sum and accrued interest on loan facility as at April 1, 2011 at an interest rate of 21% per annum until Judgment is delivered and thereafter, a post judgment interest of 19% per annum until the final liquidation of the debt.

An order against the Defendants for repayment of the sum of N1, 887,720, 014.89 (One Billion Eight Hundred and Eighty Seven Million

Seven Nine Kobo) Hundred comprising and the principal sum and accrued interest on loan facility as at January 1,2012 at an interest rate of 21%per annum until judgement is delivered and thereafter,a post judgement interest of 19% per annum until the final liquidation of the debt.

    Judgment in the sum of  of N4, 158,  913,416.48 and (Four Billion one Hundred and fifty Eight Million and Thirteen Thousand Four hundred and Sixteen naira and Forty-Eight Kobo) being the indebtedness of the Defendants to the Plaintiff arising from the credit facility granted to the Defendants by First City Monument Bank Plc and FinBank Plc cumulatively and accrued interest as at February 1, 2016.

   An order granting the Plaintiff the Power of Sale and/or disposal of the Defendants’ parcel of land and its appurtenances thereon measuring approximately 3652.69 Square Metres and described as Plot A, Block 113 Lekki Peninsula Scheme Petrol Filing Station at Eti-Osa Area of Lagos State, covered by a Deed of Assignment registered as No. 78 at Page 78 in Volume 2041 at the Lagos Lands Registry, Ikeja, Lagos State, and to apply the proceeds in partial or final liquidation of the debt.

An order granting the plaintiff the Power of Sale and/or disposal of the Defendants’ parcel of land and its appurtenances thereon measuring approximately 15, 375.866 Square Metres and described as Plot No. X, Oregun Industrial Scheme, Ikeja Local Government Area of Lagos State, covered by a Certificate of Occupancy, dated 11th May 2008 registered as No. 55 at Page 55 in Volume 2008H at the Lagos Lands Registry, Ikeja, Lagos State, and to apply the proceeds in partial or final liquidation of the debt.

An order granting the Plaintiff the Power of Sale and/or disposal of the Defendants’ parcel of land and its appurtenances thereon measuring approximately 0.6394 Hectares and described as Plot 9, L.P KN24, Bombai Industrial Area Extension, Nassarawa, Kano State, registered as No. 174 at Page 174 in Volume 102 at the Land Registry Office, Kano and to apply the proceeds in partial or final liquidation of the debt.

      An order granting the Plaintiff the Power of Sale and/or disposal of the Defendants’ parcel of land and its appurtenances thereon measuring and described as 36, Cappa Avenue, Palmgrove Estate, Lagos, and to apply the proceeds in partial or final liquidation of the debt.

An order directing the Securities and Exchange Commission (SEC) to place a lien on  Dana Motor’s 28.8 Million Units of Prestige Insurance Plc Shares pending the determination of the substantive suit.

      An order granting the plaintiff the Power of Sale of 28.8 Million Units of Prestige Insurance Plc Shares belonging to the Defendants and to apply the proceeds in partial or final liquidation of the debt.

    Cost of this suit assessed as=N=10 Million (Ten Million Naira).

      However the  Court entered default Judgment for AMCON on October 7, 2016 and granted all its claims stated above.

   Thereafter the Defendants approached AMCON to restructure their loans and dispose all the Securities for the loans listed  with a view to amicably resolve the dispute taking into consideration their business relationship and the Parties have agreed to settle the matter in the following terms:

   That Mr.Ramesh Hathiramani has paid AMCON the sum of N2, 650, 944, 721.42 (Two Billion, Six hundred and Fifty Million, Nine Hundred and Forty-Four Seven Hundred and Twenty One Naira, Forty Two Kobo) as full and final settlement of the Plaintiff’s claims against the Defendants.

    That within Seven days from the date of receipt, Mr.Ramesh Hathiramani executed an unconditional acceptance of this offer and presented the extract of the Resolution of the Board of Directors accepting the offer to settle this matter out of court.

   That the Defendants signed and submitted to the plaintiff all legal documents required to prepare and file this Terms of Settlement in court within Seven days of receipt of the offer.

     All out of pocket expenses incurred in the arrangement, administration and recovery of this facility and/or prosecuting or defending any legal action, including but not limited to stamp duty, solicitors’ charges, travelling expenses, insurance premium(s) and other statutory fees, shall

be borne by the Defendant and may be debited to the account of the Defendant without further recourse.

    That the Order of this Honourable Court dated April 13, 2016 directing the Securities and Exchange Commission SEC to place lien on the defendants Units of shares in Prestige Insurance PLC be vacated

That the Parties have agreed to urge the Honourable Court to set aside the existing Default Judgment dated October 7, 2016.

That the Parties have unanimously agreed that this Terms of Settlement be pronounced as the full and final settlement of all issues between the Parties and shall be made the Judgement of this Honourable Court.

That the Parties represent and warrant not to institute or commence any other legal proceedings in connection or related to the claim or any issue which forms part of or the whole subject matter of this Suit No. FHC/L/CS/390/2016.

The term of settlement has already been entered by the court as judgement of the court.