Huge Debt: Ecobank Warns Prospective Buyers Of Honeywell Flour

Ecobank Nigeria Limited has placed a 'Caveat emptor' (Let the buyer beware)sign over the move by Flour Mills Nigeria PLC to acquire 71.69 percent of Honeywell Group Limited. In a statement on Tuesday, the bank said the company is hugely indebted to it and that the debt is currently a subject of litigation. Kunle Ogunba & Associates, Ecobank’s lawyer said consequent upon a press release circulated in several online publications, the bank decided to alert the general public and the corporate bodies on the danger inherent in dealing in any shares of the company. Ecobank, while narrating its interest in the company, said it advanced several loan facilities which includes working capital disbursements to Honeywell Flour Mills Plc and that due to the failure of the company to liquidate the said loan facilities, Ecobank was constrained to commence winding up proceedings against Honeywell Group Limited at the Federal High Court, Lagos in suit no: FHC/L/CP/1571/2015; Ecobank said Honeywell Group Limited, being Respondent to the winding up petition, objected to the jurisdiction of the trial court to preside over the said suit, this the bank said was upheld by the trial Court, Aggrieved with the decision of the trial Court, Ecobank said it filed an appeal (with appeal No: CA/L/1041/2016) at the the Court of Appeal, Lagos Division and that upon review of Ecobank’s case, the appellate court found merit in the appeal, and held that the winding up proceedings against Honeywell Group Limited was properly commenced and that the Federal High Court had jurisdiction to hear the said petition.