25 C
Tuesday, September 29, 2020
- Advertisement -

UBA Moves to Wind Up Sahara Energy


What Manner of Olive Branch? By John Mayaki

Happy times are here for Godwin Obaseki, who rode into victory, courtesy of his Rivers State counterpart and comrade-in-electoral sleight of hand,...

Between ‘Dividers-in-Chief and Dividers-in-Law’ By Wole Soyinka

I am notoriously no fan of Olusegun Obasanjo, General, twice former president and co-architect with other past leaders of the crumbling edifice...

Putting our Money Where Our Mouth Is – By Femi Adesina

There is a story that President Muhammadu Buhari likes to tell. He has done so many times in public and private meetings....

El-Rufai and the next Emir of Zazzau By Aliyu Tilde

The last colonial Governor of Northern Nigeria, Sir Bryan Sharwood Smith, was the District Officer (D.O.) of Zaria when the Emir of...

The United Bank for Africa (UBA) has asked a Federal High Court in Lagos to wind-up Sahara Energy Resources Limited over a seven-year-old debt. UBA, which operates in several African countries, claims that Sahara Energy is liable for a N15 billion naira debt owed by KEPCO Energy Resources Limited (KEPCO), which it claims that Sahara Energy had guaranteed. UBA’s lawyer Temilolu Adamolekun filed the petition before Judge Mohammed Liman.

According to UBA, which promotes itself as Africa’s Global Bank, KEPCO recived a loan from the bank for the purpose of acquiring the Egbin Power Plant, operated by Sahara Energy’s local subsidiary Sahara Power, from the Nigerian government in 2013 after it won a bid for a seventy per cent stake in the asset at an agreed price of $407.3 million.

KEPCO subsequently applied for a loan from UBA and Sahara Energy agreed to stand as a corporate guarantor for the loan facility. The bank claims that it provided a loan of $35 million to KEPCO based on the guarantee of Sahara Energy in August 2013.

UBA averred that KEPCO failed to meet its obligations even after the bank restructured the loan twice. The interest on the rescheduled debt is said to have increased the facility to $42,282,430.49 as at December 31, 2018. The also bank stated that Sahara Energy had been notified several times to fulfill its obligation as a guarantor but had not done so, leaving UBA with no option but to seek a winding-up order.

UBA also sought “an order that the company, Sahara Energy Resources Limited, be wound up by the court under the provisions of Companies and Allied Matters Act”.

Judge Liman ordered that the winding up petition should be advertised in the Nigerian government’s official gazette and a national daily newspaper after Adamolekun filed the ex-parte motion.

An inquiry by the Lagos Times at the Corporate Affairs Commission (CAC) revealed that several prominent directors of the Sahara Energy Group including Tonye Cole, Adedeji Odunsi and Temitope Shonubi are directors of KEPCO Energy Resource Nigeria Limited, which is registered in Abuja. The other directors are Taisup So and the Korea Electric Power Corporation (KEPCO).

- Advertisement -


Please enter your comment!
Please enter your name here

- Advertisement -

Business Profiles

Okechukwu Ohanta

Okechukwu Ohanta is the Sub-Surface Manager at Tenoil Petroleum and Energy Services. Mr Ohanta is responsible for the company's subsurface studies, formation...

Chukwunonye Emenalo

Chukwunonye Emenalo is a lecturer of financial management at Lagos Business School. His teaching interests are in financial management/corporate finance. His research...

Oyewale Ariyibi

Oyewale Ariyibi is the Chief Financial Officer at FBN Holdings Plc. Before this appointment, he was Chief Finance Officer at Transnational Corporation...

Dada Awosika

Dada Awosika is the Managing Partner of D.A Awosika & Partners LLP. He started his Legal Practice in 1996 at the law...

Olamide Edun

Olamide joined Lion’s Head Global Partners in 2017 and is a member of the African Local Currency Bond Fund team, focussed on...