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‘We're not indebted to Ecobank’ - Honeywell Group




Honeywell Group is not indebted to Ecobank Nigeria Limited, according to the Bankers Committee (Sub-committee on Ethics and Professionalism).

The Committee ruled that an agreement for Honeywell to pay the bank N3.5billion as full and final payment was valid “and should be complied with.”

Ecobank has five pending applications at the Federal High Court in Lagos. Three are before Justice Mohammed Yunusa; two before Justice Okon Abang.

The bank is seeking to recover an alleged N4.1billion debt owed it by Honeywell Flour Mills Plc and its sister companies.

Honeywell also has a pending suit before Justice Mohammed Idris. The suit follows disagreements between it and Ecobank as to the complete liquidation of the group’s outstanding obligations to the bank having regards to the terms and conditions of the credit facility.

The Bankers Committee’s June 26 report, addressed to Ecobank Managing Director/Chief Executive, was signed by the Secretary, Sub-committee on Ethics and Professionalism, ‘Seye Awojobi, with reference number ODA/FMA/BUO/1493.

The committee said it received a petition that the bank was “attempting to renege on a settlement agreement” on facilities it granted to Anchorage Leisures Limited, Siloam Global Services Limited and Honeywell Flour Mills Plc.

The Committee said: “After several offers and counter offers with respect to the amount for the settlement, the parties agreed at the meeting of 22nd July, 2013, involving your bank’s MD/CEO and the Honeywell Group Chairman that Honeywell would pay N3.5billion in full and final settlement of the indebtedness of the three companies. It was also agreed that Honeywell would immediately proceed to pay N500million as a sign of faith towards the agreement.”

According to the report, Honeywell paid N500 million to the bank on July 23, 2013, and completed payment of the agreed N3.5 billion on January 10, 2014. Thereafter, the group requested for a letter of discharge from the bank.

However, the bank, in a November 14, 2014 letter to Honeywell Group, claimed that the N3.5billion was a partial payment, and that the agreement that the sum was in full and final settlement was an “in principle understanding”.

The bank also stated that Honeywell Group’s Chairman was a “related party” to the transactions, hence the request for a discharge letter could not be granted.

The Committee found that it was not in dispute that Ecobank’s management consummated an agreement on July 22, 2013 with Honeywell Group to accept N3.5billion in full and final settlement.

It further stated that when the transactions were consummated with Oceanic Bank Plc (legacy bank), Honeywell Group’s Chairman was neither on the board of the bank nor the board of Ecobank Transnational Incorporated, the parent company.

The Bankers’ Committee said based on clarifications from the Banking Supervision Department of the Central Bank of Nigeria (CBN), he was not a “related party” to the transactions as he was not on Oceanic Bank’s board when the transactions were consummated.

“After due consideration of findings, the sub-committee ruled that the agreement between the borrower and your bank to pay the sum of N3.5billion as full and final payment of the borrower’s indebtedness is valid and should be complied with and this was ratified by the Bankers Committee,” the report stated.

The cases before Justice Abang and Justice Yunusa will come up on January 13; while the one before Justice Idris will come up on January 15.


- THE NATION
‘We're not indebted to Ecobank’ - Honeywell Group ‘We're not indebted to Ecobank’ - Honeywell Group Reviewed by Utit Ofon on 12:32:00 Rating: 5

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