ASCON Oil: No Court Order Was Granted, Stanbic IBTC Rebuts Claim

ASCON Oil: No Court Order Was Granted, Stanbic IBTC Rebuts Claim

ASCON Oil: No Court Order Was Granted, Stanbic IBTC Rebuts Claim

Stanbic IBTC Bank has said that there is no court order granted to Ascon oil limited for repossession of its property – a petrol station – along Lekki Admiralty way.

In its recent release, Stanbic IBTC Bank said it attention has been drawn to a publication by various online media, which purports to indicate that Ascon Oil Limited ‘retook possession’ of a property along Lekki Admiralty Way, pursuant to an alleged Court Order issued in their favour.

“This is certainly a gross misrepresentation by Ascon, as no Court Order was granted to Ascon to warrant their extra-judicial action”, the statement reads.

The Bank accused Ascon to forcefully seizing a Petrol Station validly belonging to a third party, in total defiance and disregard of Ruling of Justice Liman of the Federal High Court on 24 July 2020.

“Please take note that the Federal High Court had on 24 July 2020, clearly REFUSED to grant Ascon’s Application to set aside the Order earlier granted to the Receiver appointed by the Bank to take possession of the Petrol Station located on Lekki Admiralty Way, Lekki Phase 1 Lagos.

“In total contempt of the Ruling by the Federal High Court, the Directors of Ascon resorted to self-help, and forcefully seized the property from the valid title holder.

“The Bank is taking all lawful steps to ensure that the illegal and unlawful ‘possession’ is reversed and the directors of Ascon are brought to book”, the management explained.

Sahara Reporter, an online media platform, reported that Ascon Oil Ltd recovered a petrol retail station following a recent ruling by Justice Mohammed Liman of the Federal High Court, Lagos.

The suit marked FHC/L/CS/567/2020, arose following a N1.7 billion loan facility.

The property which said to worth N2.5bn was undersold at N1.53bn through Stanbic IBTC’s receiver to one of its customers, Rainoil Ltd.

However, Rainoil is one of Ascon’s competitors in the downstream sector and in 2019 while Stanbic IBTC was its banker, made a bid to acquire controlling shares in Ascon Oil.

It was reported that the property had been in the receiver’s possession following a May 15, 2020 ex-parte ruling by the same court authorising the takeover of the property and restrain Ascon from interfering with the receiver’s discharge of his functions.

But on July 24, 2020, Justice Liman vacated that order after Ascon alleged non-disclosure and material misrepresentation of facts against Stanbic IBTC.

Before the July 24 ruling and in seeking to recover its property, Ascon had written to Stanbic IBTC through its Managing Director, Demola Shogunle, stating that its outstanding indebtedness was now available and that it was ready to make the payment subject to an audit of its account.

But the bank, it was learnt, declined, stating that the property had been sold.

It also declined Ascon’s requests for details of the expedited process of the transaction or evidence of any cash movement by which the property was purportedly conveyed to Rainoil.

On May 27, 2020, Ascon approached the court to set aside its earlier orders and nullify all steps taken pursuant to the orders.

It argued that since the company was not initially allowed to make its own case, this meant it was denied the right to fair hearing.

Justice Liman agreed that the receiver was wrong in law to have brought his application for the orders, ex-parte and that Ascon should have been put on notice.

Consequently, the order preventing Ascon from resisting the activities of the receiver was vacated.

Ascon had alleged in its motion on notice that the purported Deed of Legal Mortgage dated June 5, 2019 through which Stanbic IBTC derived its right or power to either appoint a receiver or sell the property was forged.

Read Also: FirstMonie: Our DNA Gives Us Advantage in Agent Banking – FirstBank

“At the time the Deed of Legal Mortgage was purportedly executed, Ascon had by letters of 28th and 31st May 2018 protested the inclusion of the property for perfection. Thus, Ascon could not have executed a Deed of Legal Mortgage over the same property,” the document stated.

Ascon also alleged that forensic analysis of the purported Deed of Legal Mortgage revealed significant inconsistencies as two supposed signatures were materially different from their regular signatures and the signature page of the purported Deed of Legal Mortgage was a counterpart copy of previously executed versions.

ASCON Oil: No Court Order Was Granted, Stanbic IBTC Rebuts Claim

It was learnt further that prior to the extant issues, Ascon in May 2019 paid N500m out of its outstanding indebtedness.

It also requested for a restructuring of the loan facility to enable it to meet the escalating repayment obligations on it following fresh terms/conditions by the bank.

The firm made an offer to the bank requesting to pay a lump sum of N500m on or before December 31, 2019, with outstanding balance spread over 24 months and suspension of further interest charges, which the bank declined.

The company revealed that it had paid about N800m out of the term loan till date.

In 2017, the oil firm requested additional trading facilities to assist it in trading and thereby make monies that will be used to offset the existing term loan.

The securities listed to secure the term loan are property at Plot 27, Balarabe Musa Crescent, Victoria Island; Lagos, lube plant located along Lagos-Ibadan Expressway, Magboro; petrol station at Osolo Way, Isolo; and petrol station at Gbagada-Oshodi Expressway, Lagos.

However, the latest ruling by the Federal High Court, Lagos, has changed the complexion of the tussle as it has ordered the return of the petrol station in Lekki to Ascon.

ASCON Oil: No Court Order Was Granted, Stanbic IBTC Rebuts Claim


  1. Hi! I’m at work browsing your blog from my new iphone 3gs!
    Just wanted too ssay I lolve reading through your blog and look forwrd
    tto all your posts! Carry on the great work!

  2. I blog frequently and I genuinely appreciate your content.
    This great article has really peaked my interest.
    I will book mark your website and keep checking for new information about once per
    week. I opted in for your RSS feed too.

  3. Undeniably believe that which you said. Your favorite reason appeared to
    be on the web the easiest thing to be aware of.
    I say to you, I certainly get annoyed while people think about worries that they plainly do not know about.
    You managed to hit the nail upon the top and also defined out the whole thing without having side-effects , people can take a
    signal. Will likely be back to get more.

  4. Have you ever thought about writing an e-book or guest authoring on other
    sites? I have a blog based on the same topics you discuss and would really
    like to have you share some stories/information. I know my visitors would value your
    work. If you’re even remotely interested, feel free
    to shoot me an e-mail.

  5. Just want to say your article is as astounding.
    The clearness in your put up is just spectacular and that i
    could think you are a professional on this subject. Fine along with your permission let
    me to grasp your RSS feed to keep updated with
    coming near near post. Thank you a million and please keep
    up the rewarding work.

  6. Hmm it looks like your site ate my first comment (it was extremely long) so I guess
    I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your
    blog. I as well am an aspiring blog writer but I’m still
    new to everything. Do you have any tips and hints for novice blog writers?
    I’d really appreciate it.

  7. Thanks for a marvelous posting! I genuinely enjoyed reading it, you may be a great author.I will make certain to bookmark your blog and will come
    back from now on. I want to encourage yourself to continue your great job,
    have a nice day!

  8. I just couldn’t go away your site before suggesting
    that I actually enjoyed the usual information a person provide to your visitors?
    Is gonna be again steadily to investigate cross-check new posts

  9. Hello! This post couldn’t be written any better! Reading this post reminds me of my old
    room mate! He always kept talking about this. I will forward this post to him.
    Pretty sure he will have a good read. Many thanks for sharing!

  10. Whats up are using WordPress for your blog platform?

    I’m new to the blog world but I’m trying to get started and create my own. Do you need
    any html coding expertise to make your own blog? Any help would be really appreciated!

  11. I used to be recommended this web site via my cousin. I’m now not sure whether this post is written by him as nobody else realize such precise about my problem.
    You are incredible! Thank you!

  12. Great article! This is the type of information that are supposed to be shared
    across the internet. Disgrace on the seek engines for no longer positioning
    this publish upper! Come on over and seek advice from my website .
    Thanks =)

  13. My partner and I absolutely love your blog and find many
    of your post’s to be just what I’m looking for.
    Would you offer guest writers to write content for you personally?
    I wouldn’t mind producing a post or elaborating on most of the subjects you write concerning
    here. Again, awesome web log!


Please enter your comment!
Please enter your name here