- Group reaffirms commitment to meeting lawful obligations
Stallion Group has assured its customers, bankers, suppliers and other stakeholders that most of its companies remain fully operational and unaffected by a Federal High Court judgment obtained by United Bank for Africa Plc (UBA) over a disputed credit facility involving Stallion Nigeria Limited and some other companies.
The group gave the assurance in a statement signed by Abdul Salam Gaffar Olatokunbo, following media reports that had created a misleading impression about the scope of the judgment.
According to the statement, the judgment concerns Stallion Nigeria Limited and certain other companies involved in the proceedings, but does not extend to the wider group or businesses that were not parties to the case.
“Stallion Group wishes to reassure its customers, bankers, business partners, suppliers and other stakeholders that the Federal High Court judgment obtained by United Bank for Africa Plc (UBA) concerns Stallion Nigeria Limited and certain other companies involved in the proceedings,” the statement said.
It added that the judgment “does not affect the wider Group or companies that were not parties to the case.”
The group explained that the disputed credit facility was granted to Stallion Nigeria Limited and selected companies, each operating as a separate legal entity.
It said the affected companies disputed the alleged indebtedness, maintaining that assets pledged to UBA adequately secured the facility.
“The relevant companies dispute the alleged indebtedness and maintain that the facility was adequately secured by assets pledged to UBA,” the statement added.
Stallion Group disclosed that Stallion Nigeria Limited had appealed the judgment and was continuing discussions with the bank while preserving its legal rights.
“Stallion Nigeria Limited has appealed the judgment and continues to engage constructively with the Bank, without prejudice to its legal rights and remedies,” it said.
The group further maintained that most of its companies were not parties to the proceedings and had no obligations arising from the judgment.
“Most Stallion Group companies were not parties to the proceedings and have no obligations arising from the judgment. Their businesses, assets and obligations remain separate and unaffected,” the statement said.
It cautioned against interpreting the court’s decision as a judgment against the entire group, insisting that the legal proceedings involved specific companies rather than all its businesses.
The statement also clarified that the court did not enter judgment against the Vaswani brothers, Haresh Vaswani and Mahesh Vaswani.
“No judgment was entered against Vaswani brothers Mr Haresh Vaswani or Mr Mahesh Vaswani,” the group said, adding that neither brother was a party to the suit or the pending appeal.
It further stated that neither brother had personal or collective liability to UBA arising from the judgment.
Reassuring stakeholders about its operations, Stallion Group said companies not involved in the proceedings had continued their production and trading activities.
“The companies not involved in the proceedings have continued production and trading. They remain focused on serving their customers and are positioned to meet their lawful obligations to banks, customers, suppliers and other stakeholders,” the statement added.
The group expressed appreciation for its stakeholders’ continued confidence, reiterating that companies not involved in the case would continue their business activities while Stallion Nigeria Limited pursued its appeal and engaged with UBA.
The post Stallion Group companies remain unaffected, fully operational appeared first on The Sun Nigeria.