A leading logistics and project freight management company, Cityflex Express Limited, and its founder Prince Solomon Adediran Aluko have been dragged before a Lagos high court by United Bank for Africa (UBA) Plc.
The bank is seeking to recover the sum of N215,22 million being the alleged outstanding balance of a loan facility of N350 million granted to Cityflex Express on March 7, 2014 for the purpose of financing purchase orders, settling its indebtedness with Unity Bank and augmenting its working capital.
In a statement of claim filed before Justice Deborah Oluyemi, the bank declared that the defendants had mortgaged a property on 82, Allen Avenue, Ikeja to secure the loan. It is therefore praying the court to foreclose the defendants’ rights to redeem the mortgage and affirm the bank’s right to dispose of the property and use its proceeds to settle Cityflex’s indebtedness.
In its preliminary objection, the defendants, while not dismissing the plaintiff’s claim outright, averred that the suit should be dismissed because it was initiated without adherence to proper procedure. Their objection was however struck out by the presiding judge who ordered both parties to file their pleadings ahead of July 9, 2018 when hearing on the case will commence.