By Dipo Olowookere
The factory of Austin Laz and Company Plc sealed by the Bank of Industry (BoI) over a protracted loan dispute has now been reopened after the development lender exited the facility.
Business Post reports that Justice Mudashiru Nasiru Oniyangi of a Court of Appeal sitting in Benin City, Edo State had in a judgment dated May 17, 2018, upturned the ruling of a lower court that gave the investment bank the authority to take over properties of the ice block machine maker.
In 2011, Austin Laz and Company went to the BoI for a N120 million five-year loan to facilitate the setting up of a new production.
However, the BoI was accused of not releasing the money in full after its approval, which hindered the completion and take-off of the new production plant of the firm, leaving it to suffer.
In a statement to its shareholders and the Nigerian Stock Exchange (NSE), Austin Laz said the action of the BoI greatly affected the company.
“The protracted loan dispute and court case disrupted the company’s activities for over four years. BOI carried out this illegal act in the second year of the five (5) years loan tenor which was an aberration.
“This is besides their refusal to release the full approved loan to the company till date, which actually truncated the particular new product line the loan was meant for from being launched into the Nigeria market as planned because of their non-disbursement of the full loan.
“It is very important to reveal that Austin Laz, BOI & NEXIM had few weeks before the seal up, concluded a refinance arrangement in BOI’s favour through the Foreign Direct Investment the company had received approval for,” the statement said.
It said further that, “After these years of waiting for justice, Austin Laz is pleased to announce that the Appeal Court sitting in Benin City, Edo State on the 17th May, 2018 ordered the immediate vacation of the Company’s premises by BOI.”
Austin Laz disclosed that after the exit of BoI from the factory, the management is now putting all necessary polices/measure in place to ensure that the company bounces back to full operations with the objective of satisfying the investment of its shareholders.
“The company also assured the numerous customers of the company across the country that their much needed products will soon be available to them.
“Furthermore, the company wishes to thank its shareholders for their steadfastness and patience and assures them that the worst times are over and look forward to a rewarding future for all stakeholders,” it said.
