DISPUTE BETWEEN HONEYWELL GROUP COMPANIES AND ECOBANK NIGERIA LIMITED. BACKGROUND.
● Anchorage Leisures Limited, Honeywell Flour Mills Plc and Siloam Global Services Limited (The Companies) borrowed from Oceanic Bank, which was subsequently acquired by Ecobank. These loans were all performing in accordance with agreed terms.
● In May 2012, subsequent to the acquisition by Ecobank. Honeywell on behalf of the companies commenced discussions to reach an agreement for full and final settlement of the indebtedness.
● On 22nd July 2013, an agreement was reached that the companies will jointly pay the sum of N3,500,000,000.00 in full and final settlement of their indebtedness to Ecobank. N500,000,000 was immediately paid and a letter written to the bank confirming the terms of the agreement. The Bank responded same day, confirming the payment agreement.
● By the 9th of January 2014 the companies had completed the payment of the agreed N3,500,000,000.00. Honeywell thereafter wrote to Ecobank confirming that the payments had been completed. and requested for: (1) a letter of discharge, (2) the release of the securities held against the facilities and (3) an update of the Group’s accounts on the CBN CRMS portal.
● In February 2014, Ecobank wrote to Honeywell confirming receipt of total sum paid and confirmed it would update the status of the concerned accounts on the CBN CRMS portal. This was and has not been done till date.
● In November 2014, following a long period of silence Ecobank finally wrote seeking to introduce new conditions.
DISPUTE
● In 2015, Honeywell petitioned the Bankers’ Committee, Sub-committee on Ethics & Professionalism for its intervention for a speedy resolution of the matter. The Sub- committee ruled that the agreement reached between Ecobank and Honeywell for the payment of N3,500,000,000 as full and final settlement of Honeywell’s indebtedness to Ecobank is valid and should be complied with. This was ratified by the Bankers’ Committee in June 2015. [exhibit 1]
● Ecobank in flagrant disregard of the Bankers’ Committee’s ruling continued to threaten the companies. The companies filed Suit No. FHC/L/CS/1219/2015 at the Federal High Court seeking a declaration from the court on whether or not they were still indebted to Ecobank. The final judgment was delivered in favor of the companies on the 31st of May, 2019.
● Subsequently, Ecobank filed Appeal No: CA/LAG/CV/975/2019 – Ecobank Nigeria Ltd v. Anchorage Leisures Ltd & 2 Ors at the Court of Appeal challenging the judgment of the Federal High Court. On 14th December, 2020, the Court of Appeal delivered a judgment overturning the earlier decision of the Federal High Court.
● Dissatisfied with the decision of the Court of Appeal, the companies appealed to the Supreme Court by filing Appeal No: SC/CV/210/2021 – Anchorage Leisures Ltd & Ors v. Ecobank. The Court held amongst other things that the negotiations between the companies and Ecobank were inconclusive and there was not final agreement for a
payment plan therefore, the companies remain indebted to Ecobank. There was however no determination as to the amount outstanding.
POST SUPREME COURT JUDGMENT
● In February 2023, Honeywell approached Ecobank in a bid to resolve the outstanding issues.
● Regrettably Ecobank furnished erroneous and varying figures as outstanding sums. These figures were grossly at variance with the balance previously indicated by the bank via several letters for the same period.
● Eventually, negotiations broke down as Ecobank was demanding for an unsubstantiated sum of N13.5 billion.
● To determine the outstanding indebtedness, the companies filed Suit No: FHC/L/CS/352/2023 – Anchorage Leisures Ltd & 2 Ors. V. Ecobank Nigeria Ltd on 28th of February 2023. The matter remains in court.
SUMMARY
● The loans were fully collateralized, and the security documents remain in the custody of Ecobank.
● Neither Mr Oba Otudeko, nor Honeywell Group were parties to the suit covered by the Supreme Court Judgement. There is no judgment against either of them.
● The matter remains in court.
● For his conduct whilst prosecuting the case, Mr Kunle Ogunba, Ecobank’s Counsel was
sanctioned for grievous professional misconduct, leading to him losing his privileged
status of Senior Advocate of Nigeria.
● The issue at hand is not about an inability to pay but ensuring what is paid is what is owed
