Bankruptcy & Debt Recovery: Olisa Agbakoba Legal Secures Victory for Major Nigerian Bank

Olisa Agbakoba Legal (OAL) recently provided legal counsel to a major Nigerian bank in a successful bankruptcy case, showcasing our proficiency in handling intricate financial matters and securing favourable outcomes for our clients.

The case, filed under Sections 1(e) and 4 of the Bankruptcy Act, shed light on the crucial aspects of filing a valid bankruptcy petition in Nigeria. The case revolved around a Credit (Loan) Agreement, which was backed by a personal guarantee from the Respondent, a director of the primary borrower. The primary borrower’s failure to repay a loan exceeding one billion Naira triggered the Respondent’s liability under the personal guarantee.

OAL successfully argued that the Respondent’s failure to fulfil the guarantee obligations met the conditions for bankruptcy under the Act. Specifically, the debt exceeded the statutory threshold of N2,000, was settled, and had been outstanding for over three months. The Respondent’s residency and business ties in Nigeria within the preceding year further satisfied the legal requirements.

This case underlines the significance of drafting credit agreements and personal guarantees with clarity regarding liability and security provisions. OAL’s experience and expertise in handling these complex legal issues were instrumental in this instance.

Through this successful outcome, we have proven our ability to:

– Interpret and implement complex bankruptcy legislation effectively.

– Develop compelling legal strategies for debt recovery.

– Advise clients on drafting comprehensive and enforceable credit agreements.

Olisa Agbakoba Legal is dedicated in providing strong legal counsel in the financial sector. We are committed to assisting our clients in navigating the intricacies of Nigerian bankruptcy law to accomplish their financial objectives.