First Bank of Nigeria Limited has described media reports alleging that it abused court processes in its legal battle with General Hydrocarbons Limited (GHL) as false and misleading.
In a statement made available to the media, on Tuesday, the bank clarified that it had fulfilled its obligations under the loan agreements. It added that the dispute began when they demanded good governance and transparency in the transactions—demands that GHL allegedly rejected.
The statement also emphasized that, as a responsible and law-abiding corporate entity with deep respect for the judiciary, First Bank will not comment on matters currently before the courts, as these are subjudice.
However, the bank expressed its concerns over what it described as “sponsored but false narratives” being circulated in some media outlets.
According to First Bank, the legal tussle stems from a commercial transaction in which it extended significant credit facilities to GHL to finance the development of certain Oil Mining Lease (OML) assets. The bank asserts that these facilities were governed by robust loan agreements that outlined the obligations of both parties and detailed the security arrangements.
The statement further alleged that breaches by GHL, including the diversion of proceeds, prompted First Bank to demand the appointment of an independent operator to manage the financed assets transparently. This request, the bank says, was in line with the terms of the agreement.
When GHL refused to comply, First Bank initiated a court case to protect its interests. The bank also accused GHL of pursuing “unnecessary arbitral proceedings” in response.
First Bank maintains that its decision to take legal action was necessary to safeguard its assets, recover diverted proceeds, and ensure that similar breaches do not occur in the future.
The bank assures its numerous customers, stakeholders and the general public that it remains solid, calm, steadfast and unflinching in its resolve to continue to provide first-class services to its teeming customers within and outside the country.
First Bank also thanked its shareholders for the indicatively oversubscribed Rights Issue of its parent Company, First Holdco Plc in the first round of its capital raise and looks forward to an equally successful final leg of t
he recapitalization exercise when it is announced by FirstHoldCor
