$225.8m First Bank Loan: Court Overturns Order Freezing GHL Assets

The injunction was set aside on Wednesday by Justice Dehinde Dipeolu of the Federal High Court sitting in Lagos on the request of counsels of the defendants in the matter.

The judge held that the financial institution did not fully disclose Justice Ambrose Lewis-Allagoa’s order in Suit Number 1953, which made the Mareva Injunction incompatible with the earlier ruling.

The counsel to GHL, Mr Abiodun Layonu (SAN) and the counsel to the 2nd to 5th defendants, Mr Olumide Aju (SAN), argued that the injunction violated an existing order from a court of concurrent jurisdiction.

First Bank, represented by Mr Babajide Koku (SAN) and Mr Victor Ogude (SAN), had approached the court via an ex-parte application in Suit Number FHC/L/CS/2378/2024 against GHL and 15 other entities despite a subsisting judgement.

Responding to the suit, GHL and some of the defendants urged the court to discharge the order freezing its assets and accounts on the grounds that the court was misled in granting same, arguing that the injunction was obtained through fraudulent misrepresentation and concealment of material facts.

GHL and other applicants accused First Bank of misleading the court to obtain orders against them.

They argued that had all the facts been presented before the trial judge, the order against them would not have been granted.

First Bank and GHL are at loggerheads of a loan believed to be about $225.8 billion. The bank froze the assets of GHL because it said the company has failed to repay the debt.

Meanwhile, the directors of GHL involved in the case are considering seeking $1 billion each in damages from First Bank for defamation and wrongful freezing of their accounts.