Oil firm asks court to liquidate debtor over insolvency

Oil and gas servicing company, Hydrodive Nigeria Limited, has urged the Federal High Court in Lagos State to wind up Saidel Limited, a firm belonging to All Progressives Congress (APC) governorship candidate in Akwa Ibom State, Akanimo Udofia, over alleged multi-million naira debt.

The petitioner, in the winding up petition filed by its counsel, Nnamdi Oragwu of Punuka Attorneys and Solicitors, told the court that the respondent failed to pay N200 million and $243,606.50 debt, weeks after the delivery of a statutory demand notice.

Hydrodive is, therefore, praying for a court order to wind up Saidel under the relevant provisions of the Companies and Allied Matters Act (CAMA) for its insolvency.

The petitioner also prayed for the appointment of Mr. Tochukwu Onyiuke, an insolvency practitioner or any duly licensed member of the Business Recovery & Insolvency Practitioners Association of Nigeria (BRIPAN) as the substantive liquidator as the court may deem fit, to immediately liquidate Udofia’s company in accordance with CAMA.

The petitioner asked for an order that the cost of the petition and that of the liquidation proceedings be paid out of the assets of the respondent.

“Upon a winding up, the petitioner/creditor of the respondent would derive the benefit arising from a thorough tracing, collection and gathering of the respondent’s assets, which will be applied by the liquidator for the settlement of the respondent’s debt.

“In the circumstances, the petitioner believes that it is just and equitable to wind up the respondent for its inability to pay its debts,” Hydrodive prayed.

The petitioner also said it specialises in providing diving, vessel leasing, sub-sea and construction support, as well as maintenance and repair of offshore facilities.

The petitioner said Saidel Limited approached it to for offshore diving works for the Southern Swamp Sales Gas Evacuation Pipeline Project sometimes in 2018, following which an agreement was reached and executed on July 17, 2018.
Parties also executed supplementary agreements in which the respondent contracted the petitioner as a subcontractor for the project, which it duly executed.

The petitioner said it completed the execution of the project in February 2019 and was issued a project completion certificate by Udofia’s company.
According to the petitioner, by the terms of the Service Agreement, Saidel Limited was required to settle the petitioner’s invoice within 45 days.
“Upon the completion of the project and execution of the certificate of completion, the petitioner raised and sent several invoices to the respondent totaling the sum of $2,613,953.12.

“Meetings between the petitioner and respondent were held where the petitioner granted concession and issued credit notes to the respondent for the sum of $214,292.47.

“Respondent paid part of some invoices leaving an outstanding sum of N200, 000 million and $243,606.50.

“Despite the terms of the service agreement and the addendums thereto requiring the settlement of the invoices within 45 days of the issuance and confirmation and consistent demands, the respondent has refused and neglected to pay the sums of N200 million and $243,606.50 owed to the petitioner.”

The petitioner said it sent several reminders, follow-ups and demands for the payment and also informed the respondent about the huge interest already accruing on the facilities borrowed to execute the contract.

Aside from earlier emails, the petitioner said it sent subsequent emails on December 2, 2019, January 6, 2020, January 27, 2020, February 12, February 24, 2020, April 18, 2020, May 25, 2020, June 6, 2020, July 18, 2020, July 28, 2020, August 20, 2020, September 28, 2020, October 24, 2020 and November 3, 2020.

Hydrodive Nigeria said: “On February 16, 2021, the respondent responded that it was trying to finalise an overdraft facility with three banks to make payment because it had no other option for payment and the respondent could not give any commitment regarding payment until it could get confirmation from the banks showing that the Respondent was becoming unable to pay its debt.”

The petitioner said it sent further mails but the respondent still did not make payment as agreed at the end of the month of March, 2021.
After many other subsequent emails, the respondent admitted an indebtedness in the sum of $150,000.00 and N200, 000 but still did not make payment for even the admitted sum.

On December 3, 2021, Hydrodive Nigeria sent a mail to Saidel Limited informing it that the debt was two-year due.

The petitioner said the respondent failed to respond to its final demand letter sent through its solicitors Messrs Punuka Attorneys and Solicitors on October 27, 2022, and still continued in default to make payment of the sums due and outstanding.

Hydrodive Nigeria, therefore, issued the statutory notice in compliance with the Companies and Allied Matters Act requiring the respondent to make payment within three weeks.

It subsequently filed the winding-up petition, praying the court to liquidate Saidel Limited. The respondent, on the other hand, said it had challenges repaying the money.

On April 1, 2021, Saidel Limited told the petitioner in response to one of the demand letters that it was “optimistic on closing the facility deal with bank”.

It added: “Unfortunately, the final Credit Risk Committee of the Bank rejected the Respondent’s requested amount and increased the collateral to 140 per cent.”

On December 6, 2021, Saidel Limited stated in another mail: “We are aware of our obligations, and we are making all efforts to close them down. Unfortunately, things did not go as planned but alternative measures are being planned to close out our obligations to your organisation. We might have taken some time, but we would be the last one to shy away from our contractual obligations.”