Bank of Industry (BOI) and the Unity Bank Plc on Tuesday were at the FCT Court, over non performance of N150 million loan granted to Valentino Project Ltd. by BOI.
Valentino Project Ltd. had in 2012 secured a loan of N150 million for the construction of water treatment factory and production in Kuje, FCT, while Unity Bank acted as its guarantor.
Mr Toluwaseun Alabi, the Counsel to the plaintiff, Valentino, said that Unity Bank acted as the guarantor for Valentine Project Ltd. to secure the loan.
Alabi said that a loan of N150 million was given to Valentino to set up a water treatment factory and production line in Kuje, adding that “it did just that, while Unity bank acted as the guarantor to Valentino.’’
He said that in August 2013, Valentino received a communication from BOI that the transaction had been terminated.
He however argued that since the loan was for five years and still operational; it would amount to a breach of agreement if it was terminated.
“Valentino Project Ltd. has built the water treatment factory and production in Kuje and bought the needed equipment, in fact everything is on ground,“ he said.
Alabi said that Valentino had refused to commence work because of the problem it had encountered, adding that the project was stalled because the N150 million had not been fully disbursed.
“It was just remaining about N5million to complete the loan and finish the project because the company has built the factory and set up everything.
“But because the Relationship Manager of Unity Bank and the people handling the facilities on behalf of BOI and Valentino Project Ltd. were not having the best of times, it just cut off as guarantor without recourse to the investment.’’
He said that there was a project appraisal before the BOI gave out the loan, adding that based on Valentino’s performance, the loan was given to the company.
Peter Inegi Counsel to the defendant, Unity Bank said that before the loan facilities was given out to Valentino, there were conditions and some obligations attached to it.
He said that Valentino was supposed to perform based on those conditions and obligations, adding that 100 per cent performance was expected before any intervention.
“Unity Bank acted as Valentino Project Ltd. guarantor for N150 million to BOI, but BOI had to act by withdrawing from Valentino Project Ltd. for non performance of obligations.’’
Justice Peter Affen of the FCT High Court, Maitama, however, reserved judgment until a date to be communicated to both parties. (NAN)