The Asset Management Corporation of Nigeria (AMCON), Polaris Bank Limited and 11PLC have approached the Supreme Court seeking to quash the recent verdict of the Appeal Court which set aside the sale of Lagos Continental Hotel to 11Plc
The company said that the parties took the matter to the apex court through its Notice of Appeal dated December 5, 2022.
Samuel Ozeh Asst. Company Secretary/Legal Adviser,conveyed this in a statement.
According to him,the parties have also filed a motion for stay of execution of the appellate court’s verdict pending the determination of the suit by the apex court.
The motion for stay of execution, copies of which were made available to journalists, was also dated December 5, 2022.
He added: “This move has effectively arrested the ability of Milan Industries Limited to enforce the Appeal Court’s judgement and would compel the parties to maintain status quo pending the final determination of the appeal by the Supreme Court,” the statement said.
“In view of this situation, the ownership and operation of the Hotel by 11 Hospitality is not in any way impacted. “11 Hospitality remains upbeat in the circumstance as its acquisition of the Hotel followed due process and it believes AMCON assigned a valid title to it pursuant to the extensive powers vested in the Corporation under section 34 of the AMCON Act (as amended)”
AMCON had acquired the Lagos Continental Hotel as an eligible bank asset on account of the failure of Milan Industries Limited to repay its loan to Skye Bank plc (now Polaris Bank Limited) to the tune of N15 billion with the interest element of the loan verging on N30 billion at the time.
The loan may have partly put paid to the bank’s financial distress and thereby necessitated AMCON’s acquisition of its non-performing loans, including that of Milan Industries Limited.
Two years ago, AMCON, in line with its powers under section 34 of the AMCON Act (as amended) assigned its interest in the Hotel to 11 Hospitality Limited, a subsidiary of 11plc (formerly Mobil Oil Nigeria Plc).
But,the sale was challenged by Milan Industries Limited at the Federal High Court, which dismissed the suit and affirmed the sale by AMCON, after it found no merit in Milan’s claim of having repaid the huge loan it took from the Polaris Bank Limited.
Milan Industries Limited then challenged the decision of the Federal High Court, and the Court of Appeal in its judgement set aside the decision of the lower court.
