The Federal
High Court in Lagos on Friday adjourned further hearing till Sept. 22 in a case
involving Guarantee Trust Bank Plc (GTB) and Virgin Nigeria Airways.
GTB had sued Virgin Nigeria Airways over its inability to service a loan
facility of about N1.3 billion.
The bank in its petition urged the court to wind up the affairs of the airline
under the provisions of Sections 409 (1) and 410 (1) (b) of the Companies and
Allied Matters Act (CAMA).
It averred that on April 22, 2008, it granted two loan facilities to the
airline, which were meant as working capital and for supply of spare parts.
The petitioner said that on May 8, 2008, the respondent was availed three other
loan facilities of $30 million, $10 million and N500 million for the payment of
aircraft suppliers.
It also alleged that several letters were written to the airline on the
consequences of its constant breach of the agreement but got no reply.
However, Virgin Nigeria, in its preliminary objection claimed that the
bank breached the law as it did not wait for the 23 days guaranteed by the Law
to lapse before filing the petition.
At the resumed hearing of the matter on Friday, Counsel to Virgin
Nigeria, Kola Awoderin, urged the court to adjourn the case to enable them
settle out of court.
The Counsel to GTB, Kunle Ogunba, confirmed that there was indeed an attempt to
settle the matter out of court.
Justice Dan Abutu consequently adjourned the case for the report of settlement.