Court bars Swift Networks from accessing N7bn in banks over debt

These are not the best of time for Swift Networks Limited, an internet service provider in Nigeria as the Federal High Court sitting in Lagos has granted Union Bank Plc an interim order of Mareva Injunction restraining Swift Networks Limited from accessing its monies up to the tune of N7,037,410,548.23 in 25 banks pending the determination of an alleged debt recovery suit.

Justice Daniel Osiagor made the order on July 19, 2023 after hearing counsel for the Plaintiff/Applicant (Union Bank) Mr. Temilolu Adamolekun move the application to protect the res in suit FHC/L/CS/1366/2023.

Swift Networks is the Defendant while the banks are the 2nd to 25th Respondents.

Besides the Plaintiff, Union Bank, the other banks are Access Bank Plc, Citibank Nigeeria Limited, Ecobank Nigeria Limited, Fidelity Bank Plc, First Bank Of Nigeria Plc, First City Monument Bank Plc, Guaranty Trust Bank Plc, Globus Bank Limited, Heritage Bank Plc, Jaiz Bank Limited, Keystone Bank Limited, Lotus Bank Limited, Parallex, Polaris Bank Limited, Providus Bank Limited, Stanbic Ibtc Bank Nigeria Limited, Standard Chartered Bank Limited, Sterling Bank Plc, Suntrust Bank Nigeria Limited, Titan Trust Bank, United Bank of Nigeria, Unity Bank Plc, Wema Bank Plc and Zenith Bank Plc.

Specifically, Justice Osiagor, after reading the Affidavit in Support, the Exhibits attached and the Written Address, ordered as follows:

“That an interim order of Mareva Injunction is granted restraining the Defendant (Swift Networks), its agents, privies and/or assigns or otherwise howsoever from dealing with any of the monies standing to its credit in all of its accounts, records or howsoever held with the 2nd to 25th Respondents and also its monies standing to its credit in custody of the Plaintiff up to the tune of N7,037,410,548.23 (billion) or its equivalent in any foreign currency.

“That an Interim order of Mareva Injunction is granted restraining the 2nd to 25th Respondents and their agents or anyone whatsoever from releasing to the Defendant or any of its Affiliate, any monies, funds or any other instrument belonging to the Defendant, to the tune of N7,037,410,548.23 or its equivalent in any foreign currency that may be or found in the custody or possession of the 2nd to 25th Respondents.”

The court also granted an Interim Injunction restraining Swift Networks by itself or through anyone from tampering with or dealing in any manner with any of its assets/properties in whatsoever form within the jurisdiction of the court, “particularly but not limited to all the assets/properties within the premises of the Defendants at 31 Saka Tinubu Street, Victoria Island, Lagos State.”

The court further directed the 2nd to 25th Respondents to “disclose on oath whatever sum of money that may be in their custody belonging to the Defendant for further direction of this Honourable Court.”

Justice Osiagor adjourned till September 27 for hearing of the Motion on Notice.

According to the Plaintiff/Applicants, the grounds of this Application are as follows:

“In the course of the bank/customer relationship, the Plaintiff agreed to grant various credit facilities to the Defendant for several purposes.

“The Defendant failed to meet its repayment obligation(s) to the Plaintiff, however, by its letter of 9th November, 2017, it requested that its debt be restructured by the Plaintiff/Applicant.

“The Plaintiff granted the Defendant’s Application for a restructure and further availed it with other credit facilities. Hence the offer letter of 29th December, 2017.

“Furthermore, the Defendant failed to perform its repayment obligation arising from the offer letter of 29th December, 2017.”

The Plaintiff/Applicants averred that owing to the Defendant’s failure in meeting up with its repayment obligation, the Plaintiff further restructured the Defendant’s indebtedness to it by its offer letter of 28th September, 2020.

It added that “Under the offer letter of 28 September, 2020, the Plaintiff availed the Defendant with a term loan facility to the tune of N7, 674,292,000.00.

“It is also the clear agreement of parties that the source of repayment shall be from the cash flow from the Defendant’s business operation and other cash flow sources available to the Defendant.

“To the Plaintiffs bewilderment, the facilities matured without the expected receivables as the Defendant failed to meet its repayment obligation to the Plaintiff under the offer letter of 28th September, 2020 which was duly accepted by the Defendant.

“It is also the clear agreement of parties that any breach of the terms of the offer letter shall constitute a default and that the entire indebtedness of the Defendant shall immediately become due and payable upon such default.”