• Thursday, May 30, 2024
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Creditors to commence N1.7bn bankruptcy proceedings against business woman

The appointment of a liquidator cannot impair a creditor’s right to sue for the protection of their rights

A Federal High Court sitting in Lagos State has given leave to creditors to commence bankruptcy proceedings against a prominent billionaire businesswoman Chioma Ude in relation to an alleged debt of ₦1,700,000,000:00 (One Billion, Seven Hundred Million Naira) only.

A statement on Monday by Niyi Odunmorayo, Media Relation Executive to Olisa Agbakoba Legal (OAL), noted that the decision was reached on 30 April 2024 after the court heard the argument of the creditor’s counsel, OAL Legal.

The statement noted that the prayer to commence bankruptcy proceedings was granted by Justice Allagoa, who stated that the creditors had presented prima facie evidence to support their claims against Ude.

Bankruptcy proceedings are widely seen as a very aggressive tool to recover debts, and a declaration of bankruptcy by the court would severely limit Ude’s ability to engage in business activities in Nigeria and around the world.

If declared bankrupt, Ude would be required to disclose all her assets and liabilities, and her properties may be sold to settle the outstanding debts.

Ude is a well-known figure in the Nigerian business community, with investments spanning various sectors, including real estate, entertainment, among others.

The news of the bankruptcy proceedings has sent shockwaves through the business community, with many expressing surprise at the development.

The proceedings in court are set to continue on June 17, 2024, when Ude or her legal representatives are expected to present their case. The outcome of these proceedings could have significant implications for Ude’s business empire and her reputation in the business world.