Friday, August 3, 2012

Exchange Notified of N164bn Judgment in Access Bank Plc V. Erastus Akingbola & Ors.


Access Bank Plc has notified The Exchange that pursuant to its acquisition and subsequent merger with former Intercontinental Bank Plc ("ICB"), Access Bank Plc (“Access Bank”) assumed all interests in litigation matters involving ICB. It is against this background that Access Bank assumed the claims instituted by ICB in 2011 against Dr. Erastus Akingbola and others, before Justice Burton of the United Kingdom High Court of Justice, Queens Bench Division Commercial Court. Yesterday 31st July 2012, Mr. Justice Burton gave his judgment comprehensively in favour of Access Bank Plc in respect of all its claims totaling 164 Billion Naira against the defendants.

Access Bank would therefore like to inform the public that following AMCON’s injection of capital into ICB (now part of Access Bank) pursuant to the Scheme of Arrangement approved by the Shareholders of the then ICB, and sanctioned by the Federal High Court, AMCON made good all the losses suffered by the then ICB under Dr. Erastus Akingbola’s management. It is by virtue of AMCON’s intervention that the then ICB’s huge negative net asset position was restored to zero.

In consideration of this intervention, AMCON became subrogated to the position of Access Bank in relation to any recoveries made by Access Bank in respect of losses that had already been made good by AMCON, (particularly losses occasioned by Dr. Erastus Akingbola). Accordingly, the benefits of the recent judgment of the High Court of England which found Dr. Erastus Akingbola liable for putting the funds of the then ICB to unlawful use, will when realized by Access Bank, be for the benefit of AMCON, having already made good the then ICB in respect of the losses suffered for which the judgment compensates.
Source: Proshare

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