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Stallion Group has assured its customers, bankers, suppliers and other stakeholders that the Federal High Court judgment obtained by United Bank for Africa (UBA) Plc does not affect the operations of its other companies that were not parties to the suit.
The Group said the judgment concerned Stallion Nigeria Limited and certain other companies involved in the proceedings, stressing that it should not be interpreted as applying to the entire Group.
The clarification follows media reports which, according to the Group, have created a misleading impression about the scope and implications of the judgment.
This was contained in a statement, signed by Abdulsalam Gaffar Olatokunbo on behalf of Stallion Group, explaining that the disputed credit facility was granted to Stallion Nigeria Limited and select companies, each operating as a separate legal entity.
The affected companies, however, dispute the alleged indebtedness and maintain that the facility was adequately secured by assets pledged to UBA.
According to him the Group, Stallion Nigeria Limited has appealed the judgment and is continuing to engage with the bank without prejudice to its legal rights and remedies.
It further stated that most Stallion Group companies were not parties to the court proceedings and had no obligations arising from the judgment.
Their businesses, assets and financial obligations, the Group added, remain separate and unaffected by the ruling.
The statement also clarified that no judgment was entered against the Vaswani brothers, Haresh Vaswani and Mahesh Vaswani, noting that neither was a party to the suit or the pending appeal.
It added that neither brother incurred personal or collective liability to UBA arising from the judgment.
Providing an update on its operations, Stallion Group said its companies not involved in the proceedings had continued their production and trading activities.
The unaffected businesses, it said, remained focused on serving customers and were positioned to meet their lawful obligations to banks, suppliers, customers and other stakeholders.
The Group reaffirmed its commitment to maintaining business operations and sustaining stakeholder confidence while Stallion Nigeria Limited pursues its appeal and continues discussions with UBA.
It expressed appreciation to its customers, bankers, business partners and suppliers for their continued confidence, reiterating that the legal dispute involving the companies named in the proceedings should not be generalised to the wider Group.
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