“GHL Counters FirstBank’s Appeal Claims” — Says Banks Already Complying With Unfreeze Order

In a statement on Sunday which was signed by the management of GHL, the firm labelled the appeal of FirstBank against the ruling as an abuse of process.

Justice Dipeolu on Wednesday vacated an ex parte Mareva injunction that froze the assets of General Hydrocarbons Limited, a Nigerian oil and gas services company, in connection with a disputed $225.8m loan debt, holding that the injunction violated an existing order from a court of concurrent jurisdiction.

GHL disclosed that banks have begun to comply with the order following the court pronouncement. However, FirstBank warned that the compliance of banks was premature as the process wasn’t completed and that they had appealed the ruling.

Countering the claims, GHL said, “Our attention has been drawn to various reports and advertisements by First Bank over the weekend purportedly proffering reasons why the banks should not comply with the orders of Hon Justice Deinde Dipeolu lifting the interim Mareva orders and other orders made on 30 December 2024, claiming they have appealed or are appealing the ruling of Justice Dipeolu in the dispute between FBN and GHL over FBN’s non-compliance with its obligations.

“The purported appeal filed by FBN and the said motion for injunction/ suspension of the discharge order is another incidence of gross abuse of process. Compliance with the order is therefore a completed act and does not need any further steps to be taken as erroneously claimed by FBN.

“In law, you cannot injunct a completed act. Secondly, the order discharging the Mareva is a declarative order. In law, a declarative order cannot be stayed neither can it be suspended, particularly after it has been obeyed. This is another incidence of desperation on the part of FBN and its lawyers either by deliberately misinterpreting extant court rulings, suppressing facts to the court and generally misinforming the general public. We reiterate and confirm that banks have complied with the extant orders of the court, except perhaps FBN.”

GHL disclosed that the orders were set aside by the court primarily because FirstBank had deliberately withheld material facts about an existing order of court made by Allagoa J., restraining FirstBank from approaching the courts (or any other forum) to enforce the facility agreement between FirstBank and GHL pending the arbitration between the parties which was initiated almost two months before FBN had approached Dipeolu for the interim Mareva orders.

“It is important to state that orders of court are valid and enforceable upon pronouncement and do not require more for them to come into effect. The order of Dipeolu J. lifting the Mareva orders is therefore the status quo between the parties with respect to accounts maintained by GHL, its directors and shareholders with the banks.

“FBN has also falsely informed the public that they have filed a notice of appeal against the said orders of Dipeolu J. lifting the Mareva orders, together with an application for injunction/suspension of the discharge order. We wish to state unequivocally that at the time of this publication, no notice of appeal or motion for injunction has been filed by FBN against the discharge orders of Dipeolu J. If they have been filed, they have not been served on GHL.

“It is pertinent to mention that even if these court processes had been filed and served on GHL, they do not have the effect that FBN has deliberately, again, misrepresented to the public. This is so because no positive orders of the court have been made in respect of these court processes to bind the banks or GHL. In all, it is safe to say that these publications have been made without appropriate legal advice and we urge the public to disregard them,” GHL said.

It went on to maintain that “the arbitration process initiated by GHL in relation to FBN’s non-compliance with its obligations upon which it declared profit from a loss position in 2021/2023 is ongoing and GHL remains committed to participating in that process and bringing this dispute to a logical conclusion.”

GHL and FirstBank have been embroiled in a tussle over a disputed $225.8m loan debt.