Why Banks Cannot Lift Order Unfreezing GHL Accounts

Why Banks Cannot Lift Order Unfreezing GHL Accounts

FirstBank has appealed a Federal High Court ruling that lifted the freeze on the assets of General Hydrocarbons Limited (GHL), its directors, and shareholders…READ MORE…

In a statement issued on Sunday, the bank cautioned other financial institutions against hastily complying with the decision of Justice Deinde Dipeolu, emphasizing that it has challenged the ruling and that compliance at this stage would be premature.

FirstBank’s Position on the Court Ruling

The statement reads:

“Our attention has been drawn to media reports suggesting that some banks have begun implementing the ruling by Honourable Justice Deinde Dipeolu of the Federal High Court, Lagos, which lifted the Mareva injunction on the assets of General Hydrocarbons Limited, its directors, and shareholders. We wish to clarify that such actions are premature, as the necessary procedural steps for full compliance have not been completed.”

The bank further explained that:

• It has filed an appeal against the court’s decision to discharge the Mareva order.
• A motion for an injunction or suspension of the discharge order is pending until the appeal is determined.
• Banks are expected to maintain the status quo until the appeal process is concluded.

FirstBank reiterated its commitment to protecting stakeholders, depositors, and shareholders, while actively pursuing all legal options to recover outstanding debts from defaulters.

Court’s Decision and Ongoing Compliance

On Wednesday, Justice Dipeolu vacated the ex parte Mareva injunction that had frozen GHL’s assets over a disputed $225.8 million loan debt. The judge ruled that the injunction was in conflict with an existing order from another court of concurrent jurisdiction.

Following the ruling, GHL stated that banks have started complying with the court’s directive. However, FirstBank maintains that full compliance should be withheld pending the outcome of its appeal.

Despite the legal battle, FirstBank reassured stakeholders of its financial strength and stability, emphasizing that all matters are being handled with transparency and due diligence.

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on Whatsapp