Skye Bank takes over Obat Oil depot from King Akinruntan, over N2.1b debt

A Federal High Court in Lagos has given Skye Bank Plc the legal backing to take over Obat Oil and Petroleum Ltd’s depot over an alleged N2.1 billion debt. Justice Jude Dagat asked the IG of Police, the AIG of Police to assist in the enforcement of the order. . . The order followed an Originating Motion by the bank seeking the enforcement of an arbitral award dated Aug. 7, 2015. Skye Bank had sought to recover a debt of N2. 1 billion owed it by Obat Oil and Petroleum. 

The loan was guaranteed by King (Dr.) Akinruntan. . . As a result, Obat Oil and Petroleum’s depot was sealed up yesterday, pending liquidation of the debt. 

The bank further sought to recover 15% interest on the amount from April 2014 till the liquidation of the debt. . . The case was taken before an arbitrator, Aare Afe Babalola (SAN), during which Obat Oil and Oba Akinruntan appealed for concessions and waivers on the amount of accrued interest, fees and commissions. . . 

After the arbitration, the Arbitrator held that it would be fair and equitable to award N1.4bn to the claimant, which represents the amount the respondents admitted as being the outstanding balance as at March 31, 2014. . . Babalola also awarded 10% interest yearly on the N1.4b from the April 2014 till final liquidation of the amount. 

The bank, however, alleged that Obat Oil and King Akinruntan failed to comply with the Arbitration Award and applied to the court to order the award’s enforcement."