A court has directed the owners of 9mobile to pay over N55 billion to a Nigerian bank. Learn more about the court’s decision and its impact.
Bode Olanipekun, SAN representing Keystone Bank brought the case before the court. He accused Teleology Nigeria Limited of defaulting on a loan that was obtained to facilitate purchasing vital assets from Emerging Markets Telecommunication Services Ltd., also called 9Mobile Network.
Despite the loan restructuring proposed by Keystone Bank, Teleology failed to meet essential requirements stated in the agreement, as evidenced by Olanipekun’s observation.
Instead of tackling the debt directly, Teleology put forth an alternative plan through PAC Limited that involved converting it into equity without requiring immediate repayment – as noted by Olanipekun.
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Michael Kaase Aondoakaa, SAN, legal representative of Teleology Holdings Limited opposed Keystone Bank’s plea for a favorable judgment by challenging the court’s authority to intervene in disputes between bankers and customers.
Olanipekun responded by seeking the dismissal of Aondoakka’s arguments, contending that there was no appeal or petition to stay the court ruling.
Justice Bogoro declared on Friday that the defendant’s application was intended to impede judgment and found it incongruous with the ongoing proceedings.
The court came to the conclusion that Teleology had no legitimate explanation and ruled in favor of Keystone Bank, directing them to payback their remaining debts which amount up to N55,776,507,599.
