Call it a royal pain and you will not be wrong.
This may be apt to capture the trouble that the Olofa of Offa Kingdom, Oba Mufutau Gbadamosi, is currently going through.
Spy Glass gathered that the respected royal father is running from pillar to post to wriggle out of an alleged debt scandal.
The first-class monarch has been dragged before a Federal High Court in Lagos by the Asset Management Corporation of Nigeria (AMCON ), in a bid to recover a debt of N11,280,998,959.78.
The loan was said to have been obtained by the flamboyant monarch through his two companies, Zarm Poultry and Feeds Mills Limited and Zarm Stores Limited.
In the suit filed by a Lagos lawyer, Osayaba Omorodion Giwa Osagie, it was alleged that pursuant to its enabling act, AMCON sometime in 2012, purchased certain Eligible Bank Assets of the former Oceanic bank in the sum of N1,859,654,737.00 and N4,586,369,001.47 respectively.
As of April, 2017, Zarm Poultry and Feeds Mills was indebted to AMCON to the tune of N3,027,486,610.59 being the unpaid principal and interest on a term loan facility of N2.3billion that was given to the company sometime in 2006 by the former Oceanic Bank to finance capital expenditure on its farm at Odonla, Ikorodu, Lagos.
The term loan was secured by the execution of a deed debenture over fixed and floating assets of the company, which included the execution of a deed legal mortgage over Plots 407 and 408, Odonla industrial Estate, Opposite LSDPC Housing Estate Odonla, Ikorodu Lagos.
As at 8 April, 2017, Zarm Store Limited was also alleged to be indebted to AMCON to the tune of N8,253,512,349.19 being the unpaid principal and interests on a restructured term loan facility of N3,055,764,554.71granted to Zarm Stores Limited sometime in 2009.
The loan was subsequently further restructured to N4,462,589,667.33 to accommodate the debts arising from unpaid facilities granted Zarm Stores Limited’s other affiliates besides the one of Zarm Poultry and Feeds Mills Limited.
The further restructured term loan was secured by a legal mortgage over a piece of land measuring 818.058 square meters, being Block 1B Osborne Phase 1, Lagos and the personal guaranteed of Oba Mufutau Gbadamosi who is the Chief Executive Officer and also the majority subscriber to the shares of the two companies.
It was further alleged that the defendants had not made any payments since the debts were assigned to AMCON, in spite of several discussions and negotiations between the parties.
The period stipulated for the repayment of the banking facilities has since elapsed.
It was also gathered that the AMCON is praying for a declaration that Zarm Poultry and Feeds Mills Limited “ is indebted to it in the sum of N3,027,486,610.59 with interest thereon at the rate of 21% per annum from April 9, 2017 until judgment and thereafter at the rate of 10% until total liquidation. “
In another prayer, AMCON is seeking a declaration that Zarm Stores Limited is indebted to it in the sum of N8,253,512,349.19 with interest thereon at the rate of 21% per annum from May 1, 2017 until judgment and thereafter at the rate of 10% until total liquidation. “
AMCON also wants an order foreclosing mortgages on Plot 407 and 408, Odonla industrial Estate, opposite LSDPC Housing estate Odonla, Ikorodu, Lagos mortgaged by the Zarm Poultry and Feeds Mills Limited and Oba Mufutau Gbadamosi to the former Oceanic Bank as collateral for the grant of the facilities to Zarm Poultry and Feeds Mills Limited and empowering AMCON to exercise its power of sale as an unpaid mortgagee.
Spy Glass also gathered that AMCON is seeking an order attaching the amount standing to the credits of the defendants in all financial institutions in Nigeria in satisfaction of the two companies’ debts.