R.T. Briscoe PLC In A Winding Up Suit With Diamond Bank, UBA

R.T. Briscoe

There is currently a court injunction that its outcome might determine the future existence of R.T. Briscoe PLC, a major car dealer for Toyota and Ford in Nigeria is facing a winding up suit.

In a suit filed by Diamond Bank PLC and the United Bank for Africa against the company, RT Briscoe is accused of not being able to liquidate its loan facility of about NGN2 billion extended to the company. In a related matter, United Bank PLC, another banker to RT Briscoe has also joined the suit, claiming the company owes it about NGN1.8 billion.

In an affidavit deposed by counsel to United Bank for Africa, before Justice Ibrahim Buba of the Federal High Court by Mr. Kemi  Balogun, Senior Advocate of Nigeria, SAN, the deponent, Barrister Olabisi Tella, asserted that R. T. Briscoe Plc obtained from UBA four types of facilities.

According to the affidavit, NGN2 billion as inventory facility, NGN50 million as bond and guarantee, NGN750 million as overdraft facility and NGN1.250 billion as import facility for the importation of Toyota spare parts. The facilities had tenors of 365 days, with periodic reviews every 90 days and at an interest rate of 15 percent per annum, which is subject to review by the bank from time to time in accordance with the prevailing market situation.

On the part of Diamond Bank, RT Briscoe’s debt is preventing the bank from balancing its books and the bank claimed that inability to recover the debt risks the wrath of the Central Bank of Nigeria, CBN.

rt briscoe
R.T. Briscoe’s Stock 1 year Trend. Source: Bloomberg. Data is 15 minutues delayed. Ts&Cs applies

The court has gone ahead to freeze all assets of R.T. Briscoe “its directors, staff, management, employees, officers, agents, privies or any other persons under the authority of R.T. Briscoe from operating, withdrawing or otherwise tampering with the respondent’s funds under whatsoever name or guise in any bank or financial institutions within Nigeria”.

However, counsel to R.T. Briscoe hinted  that the company might appeal the case. Abubakar Sulu-Gambari said “The interim order of injunction made by this honourable court on June 13, 2016 is null and void ab initio,”

He said concluded that “As matters stand today, no staff (for June and beyond) can be paid unless the order of injunction dated  13 June, 2016 is discharged and vacated. Same applies to contractors, suppliers and tax authorities,”

R.T. Briscoe is a leading dealer in Toyota and Ford vehicles. The group has related companies namely: Briscoe-ford, Briscoe Motors, Briscoe Technical and Briscoe Properties. The company’s stock currently trades at NGN0.50 per share. The stock has declined by 71% in the past 5 years.

 

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