Sterling Bank takes Over Dana Group Assets Over NMulti Million Debts!

 

Dana group of companies may wind up its operations in Nigeria due to the indebtedness of the group to financial institutions.

According to information available to yemojanewsng.com, Dana group is owing a leading commercial bank, Sterling bank several billions of naira which the group has not able to pay back.

Dana group is made up of several companies which include Dana Air limited, Dana cars and services (distributors or Kia motors and Renault ), Dana plastic limited, Dana drugs limited and Dana Rice.

Other companies under the group are Aquadana, Ashrina limited, Dana motors limited and others

yemojanewsng.com gathered that the group which was establish in the mid 80’s had been struggling to survive for the past 10 years and had been posting unfavourable returns in its books.

With a huge debt burden on its neck, Dana group, we learnt, was dragged to a Federal High Court sitting in Lagos by Sterling bank, and after legal fireworks, the court ruled in favour of Sterling bank.

The bank, thereafter appointed the chambers of Kunle Ogunba (SAN) of Insolvency Forte as Receiver/Manager over the entire undertakings and stocks, good will, plant and machinery, moveables and fixed property or assets of Dana Group of Companies PLC.

The deed of appointment of Receiver/Manager was dated the 23rd of April, 2014 and has been duly registered with the Corporate Affairs Commission, Abuja.

In a public notice published in a national newspaper on Wednesday June 18 2014 by Kunle Ogunba & associates, the chamber stated that, ”All debtors of the company are to pay directly to the Receiver/Manager. Also all creditors (if any) are to send their proof of claims to the Receiver/Manager within 14 (fourteen) days from the day of this publication”.

The Receiver/Manager also stated that ”All deposits, cash, shares and others currently held by banks, Financial Institutions, Companies and Regulatory Authorities in Nigeria should be held until the insurance of further instruction by the Receiver/Manager in accordance with the pre-emptive Orders of Court in SUIT FHC/L/CS/877/2014 pending within the bossom of the Federal High Court, Lagos division. All holders of such deposits and current account should contact the Receiver/Manager stating the balances and where secured facilities are granted, the type of security attached should be disclosed”.

With the appointment of Receiver/Manager over the entire assets of Dana group, it is crystal clear that the group may seize to exist in the country again.