Guaranty Trust Bank (GT Bank) has filed a lawsuit against an importer, Emmanuel A. Adeniji, for defaulting on a cement importation loan tied to Adeniji’s compound.
The compound encompasses an apartment building with10 residential flats, each containing three bedrooms, bathroom, living and dining rooms and kitchen. It is located on the Robertsfield/ELWA Highway. The bank is seeking a receiver for the property.
The lawsuit alleged that Adeniji’s company, Jumbee Liberia Incorporated, is in default on the loan and owes US$49,643.74 excluding interest and other fees, according to the “Action of Debt by Attachment,” a suit filed in the Commercial Court at the Temple of Justice.
The lawsuit is the latest in a series of loan troubles facing several banking institutions in the country.
GT Bank further alleged that in order to effectively implement its credit facility program, it made a US$1,000,000 loan to Jumbee Liberia Incorporated in 2011, for a period of one year, so that it could pre-finance the importation of cement into the country.
According to the document, Jumbee defaulted on the credit facility agreement dated November 4, 2011. Jumbee later requested the bank to renew its line of credit with an increase of US$150,200, thereby increasing the total amount owed to US$1,150,200.
The bank admitted that out of the loan amount, Jumbee has made substantial payments totaling US$950,643.74, as per its statement dated November 17, 2014, leaving a balance of US$49,683.74.
According to the document, stated the bank, Jumbee’s chief executive officer (CEO), Emmanuel A. Adeniji, and the compound are guarantors on the loan. Also named in the suit are several of the entity’s senior management.
It further alleges that Jumbee and its management are in default on the loan and that the bank has made a demand for the surrender of the property.
Under the agreement, the bank again claimed that Jumbee agreed to keep all the proceeds from the sale of the cement in its Import Finance Facility Account at the bank.
Jumbee also executed a tripartite legal mortgage over its compound containing the apartment building situated on the Roberts International Airport (RIA) Highway, in Margibi County.
The court record also showed that the property was appraised by Caesar Architect Incorporated with a forced sale value of US$708,394 as of October 2011.
It said that the CEO and Jumbee Liberia Incorporated executed a personal guarantee note in order to provide security guarantee of the full facility amount and accrued interest.
However, the document alleges that the defendants, on several oral and written demands, have failed and neglected to honor their financial obligations as agreed upon.
It is based on that failure that GT Bank is seeking the court’s intervention for judgment against the defendants.