Sterling Bank Drags Vessel MV IGBUNU To Court Over Alleged N1.7billion Debt


Sterling Bank Plc, has dragged Vessel MV IGBUNU to Federal High Court in Lagos, over alleged N1.7billion debt.

In a statement of claim filed before the court, Sterling Bank alleged that the acquisition of M V IGBUNU an ocean going vessel was financed by the bank through various loan granted to Sego Oilfield services limited.

The bank according to said the owners of the vessel is resident at 41/43Oroigwe Road,Elimgbu East West Road Rumuokwosi, Port Harcourt, River State.

The bank said sometimes in March, 2013 the defendant’s owners applied to the bank for and granted facility in the sum of $2,689,256.76 in the form of unconfirmed letter of credit for the purpose of purchasing the vessel.

It said in compliance with the terms and conditions of the offer, the defendant owner’s Chairman /Managing Director executed a Personal Guarantee in favour of the bank.

“The owners took out another two separated facilities in the sum of N45 million from the bank for the purpose of financing the importation cost, and also executed a credit Facility Agreement with the bank and N8 million for the purpose of financing the wireline contract with Shell Petroleum & Development Company and also executed a credit facility Agreement with the bank.

“However, notwithstanding the above and express provisions in the offer letters, the deed of Legal Mortgage and the various Credit facility agreement, the owners have continuously refused and repeatedly failed to honour their contractual obligations despite repeated demands, as the defendant and their owners are heavily indebted to the bank as mortgage seized with the proprietary interest against the defendant vessel for the sum of N,1,745,824 309.30, representing the outstanding sum on the legal mortgage on the defendant vessel and the loan amount remaining unpaid from the loan agreement for the purchase of MV IGBUNU, accrued interest and other loan facility related to the transaction which sum the vessel her owners, Charterers and operators have failed to pay or any part thereof,’ the bank said.

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The bank said its claims against the defendant was N1,745,824,309.30 together with 15% interest per annum until judgement and 10% post judgement interest until payment and the legal costs of instituting and prosecution of this legal action.

The suit was adjourned till October 11th for Vessel MV IGBUNU to open its defence.


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