Sheriffs at the Commercial Court at the Temple of Justice are now poised to auction the home of Christopher Z. Neyor, former Chief Executive Officer (CEO) of the National Oil Company of Liberia (NOCAL), as Guaranty Trust Bank (GTBank) tries to recover US$173,490.38 Neyor and his Morweh Energy Group owe the bank.
Neyor used his Old Road, Sinkor, home as collateral to borrow US$150,000 for a period of six months, a loan the bank claimed he is unable to service.
According to the bank, Neyor’s deliberate refusal to settle his US$150,000 debt, including the 14 percent interest on the loan and 17 percent legal fees, has summed-up the total amount to US$173,490.38.
He took the “Time Loan Facility” on December 22, 2015 as CEO of Morweh Energy Group, a Liberia-based company.
Additionally, Neyor signed a domiciliation agreement promising to have all Morweh’s assets, including his home, sold if he did not meet-up with the terms and conditions of the loan.
Under a domiciliation agreement, a unique code is obtained from the bank, which identifies the agreement between the bank and the customer, the bank’s lawyer, Atty. Jonathan Massaquoi, explained.
For that, the court has summoned Neyor to appear in court on Tuesday, October 4. Unfortunately, the writ was issued before the court gathered that he and his wife are out of the country.
According to court records, Neyor has not honored some of his earlier court scheduled dates.
Neyor’s frequent failure to attend hearings prompted Atty. Jonathan Massaquoi, one of the bank’s lawyers, to request the court to hold the defendants (Neyor and Morweh Energy Group) liable for the amount of US$173,490.38 and the cost of recovery stipulated in the loan agreement.
It is not clear if Neyor would attend Tuesday’s hearing; if he does not, the court may likely issue the order to have his home sold.
In their “Action of Debt” lawsuit, the bank alleges that on December 22, 2015, it granted Neyor, also CEO of Morweh Energy Group, a “Time Loan Facility” valued at US$150,000 for a period of six months “to partly finance his personal obligations.”
The bank’s lawyer, Atty. Massaquoi, claimed that the credit facility provided for six equal monthly installments or payments of US$25,000.
“But Defendant Neyor has refused and neglected to make one single payment against the facility,” Atty. Massaquoi complained to the court.
He claimed that the “Time Loan Facility” was granted to the company at a rate of 14 percent.
The bank also said it issued several written communications to Mr. Neyor before taking the matter to court.
The suit named one lot of land situated in Oldest Congo Town as some of Neyor’s security collaterals for the loan, which he had earlier registered in favor of the bank’s security interest during the loan transaction.
The lawyer told the court that after several failed attempts to recover the amount from Neyor, they hired the services of an external lawyer at a rate of 17 percent service fee of the outstanding amount to file the suit against the defendant at the court.
“This action is intended to recover from the defendant the default amount of US$173,490.38, plus all other costs of recovery consistent with the Time Loan Agreement,” the bank pleaded in the suit.
It may be recalled that Neyor contested the 2014 mid-term senatorial election for Montserrado County, but lost.
A legal expert told the Daily Observer that the Commercial Court is currently clogged with cases of borrowers, who are unable to repay the various amounts of money they borrowed from a dozen financial institutions.
“If this trend is left unchecked, several banking entities could end up folding up, because they may not be in the position to recover millions of dollars of credit,” the expert noted.
According to the expert, in the past two years alone, more than 20 Liberian-owned businesses have lost their properties, most of them their only family home, as their creditors used the legal means to recover unspecified amounts of money they had earlier borrowed from banking institutions.