Skye Bank to take over Intercontinental Hotels for USD31 million debt

intercontinental hotel

A Federal High Court in Lagos has ordered Skye Bank Plc to take over Intercontinental Hotel situated in Victoria Island, Lagos over an alleged debt.

It appointed a Senior Advocate of Nigeria (SAN), Mr. Kunle Ogunba, as the hotel’s receiver-manager in order to preserve its assets.

The bank claimed to have granted loan facilities of USD29.8m and N3.8bn to Milan Industries Limited to construct the hotel which has about 361 rooms, is on Plot 244 and 245 (now 52) Kofo Abayomi Street on Victoria Island in Lagos.

The bank’s lawyer, Mr. Kunle Ogunba (SAN), however, claimed that Milan Industries Limited defaulted in the repayment of the loan to his client, which, he said, necessitated the suit.

“At the expiration of the tenure of the various facilities extended by the plaintiff, the defendant failed and/or neglected to liquidate the various facilities and same continues to accrue interest.

“The facilities availed the defendant have since matured and/or expired and the defendant has failed to liquidate same and failed to comply with various repayment plans of the principal and interest despite several magnanimities extended to it by the plaintiff,” the bank said.

“The balance of convenience in the instant suit is in favour of the plaintiff/applicant whose funds are taxpayers’ monies which ought to be accounted back to the Central Bank of Nigeria,” the bank added.

Following an ex parte application, Justice Babs Kuewumi ordered Skye Bank to take over all assets of Milan Industries Limited including Intercontinental Hotel, which is covered by a deed of legal mortgage, pending the hearing and determination of substantive suit.

He directed the Assistant Inspector General of Police, Zone 2, the Commandant of the Nigeria Security and Civil Defence Corps and their agents  to assist Ogunba in the performance of his duties as the receiver-manager.

The case is however adjourned to May 17, 2017.

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