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Nairaland Forum / Nairaland / General / Politics / African Petroleum Is Bankrupt Says Access Bank (5588 Views)
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African Petroleum Is Bankrupt Says Access Bank by BlackRevo: 5:10am On Jul 21, 2009 |
"The company is insolvent and unable to pay its debts. In the circumstances, it is just and equitable that the company should be would up." Such is the conclusion Access Bank Plc. has reached about African Petroleum Plc. (AP) following AP's failure to repay the bank $35.1 million. http://234next.com/csp/cms/sites/Next/Money/Finance/5437955-146/story.csp Please oooooooo, investors in african petroleum follow these very carefully so you don't loose your money. This is the best i can do by posting here and the judgement is one wednesday. Stay tuned |
Re: African Petroleum Is Bankrupt Says Access Bank by presido1: 9:19am On Jul 21, 2009 |
Dangote is going down, Otedola is going down. Whoz next? |
Re: African Petroleum Is Bankrupt Says Access Bank by back2back(f): 9:21am On Jul 21, 2009 |
And so OBJ house-of-cards already started collapsing. What a lesson!!! |
Re: African Petroleum Is Bankrupt Says Access Bank by asha2: 9:23am On Jul 21, 2009 |
Is this not related this topic i posted yesterday.If only nairaland spam bot will allow me to past it. https://www.nairaland.com/nigeria/topic-299088.0.html |
Re: African Petroleum Is Bankrupt Says Access Bank by philip0906(m): 9:43am On Jul 21, 2009 |
presido1:4 where?d'u think they will come and tell us how much they have?they r trying 2 play along with the recession and make it look like they 2 r having problems.atleast 4 now in naija,none of these people will go down.never cos even if,they always have their way of turning around.Next thing u'll c on the headline of a business magazine in 4 years 2 come is "HOW I MANAGED TO TURN AROUND AFRICAN PETROLEUM,AND BECOME THE RICHEST BLACK MAN ON THE PLANET"-Femi Odetola. |
Re: African Petroleum Is Bankrupt Says Access Bank by presido1: 9:53am On Jul 21, 2009 |
philip0906:Not when Mend is blocking their channel. When resource control if fully implemented will then know who is the real entrepreneur and the Govt aided entrepreneur. |
Re: African Petroleum Is Bankrupt Says Access Bank by MrCrackles(m): 10:47am On Jul 21, 2009 |
I personally dont think Femi Otedola is in trouble. . . . . Looks like AP/Otedola camp is up to something Access Bank will get thier money but whether they will get it according to thier own terms or AP/Otedola's terms, i dont know. . . . Fingers crossed and very interested in the final outcome on this one! |
Re: African Petroleum Is Bankrupt Says Access Bank by Ibime(m): 10:56am On Jul 21, 2009 |
back2back: Apt summary. |
Re: African Petroleum Is Bankrupt Says Access Bank by Nezan(m): 11:53am On Jul 21, 2009 |
presido1:OBJ's magic wand has met a water loo. |
Re: African Petroleum Is Bankrupt Says Access Bank by tkb417(m): 11:54am On Jul 21, 2009 |
MrCrackles:The Bank will get their money on their terms! For all those positioning to buy the downstream oil coys, u guys can wait a lil more. Im expectin some katrina in tht sector anytime soon MRS? hehehehe we shall see where they will end also fingers crossed |
Re: African Petroleum Is Bankrupt Says Access Bank by BlackRevo: 1:01pm On Jul 21, 2009 |
asha 2: Yes it is related to it and i have seen that as well. the article is there in the post now and it is on the frontpage. philip0906: Well we have seen that with the banks in the usa but i dont think any nigerian company will want to pull that recession stunt on us. Did you read the punch about three banks first bank, oceanic and one other bank that serviced 76 billion naira loan. oceanic did not pay dividend, first bank paid out of its reserve and you know it is this banks that gives money to this company so if the bank are not healthy i think this companies will not be healthy as well. presido1: i am joining you to say it more louder. |
Re: African Petroleum Is Bankrupt Says Access Bank by bigben3: 1:10pm On Jul 21, 2009 |
Quite interesting topic,we'll see how this end |
Re: African Petroleum Is Bankrupt Says Access Bank by dfanthom(m): 1:26pm On Jul 21, 2009 |
something is surely amiss. . . . these briefcase businessmen are at it again. they want to create panic in the system. i'm sure it's not what it seems to be. let's be more vigilant, observant & follow the chain of events more closely |
Re: African Petroleum Is Bankrupt Says Access Bank by bebe4u(f): 1:31pm On Jul 21, 2009 |
HMMN, do i smell some distress in Access Bank if AP doesnt pay. I am not sympathetic to the bank, the deduct all manners of charges from your account and have a kini big deal attitude when you dare question them like they are doing you a favour banking with them. I'ts time to start selling some your shares in AP and withdrawing some of your cash from the bank, just to be safe. its just my opinion. |
Re: African Petroleum Is Bankrupt Says Access Bank by klas(m): 2:00pm On Jul 21, 2009 |
The Punch of today on page 15 and Nigerian Compass of today on front page carry the same story on AP management reaction to the liquidation petition. According to AP "We are ready to pay but we are opposed to Access Bank's tactic to fleece us. They want to rip-off our company to the tune of N400million" According to them they opened form M through access bank which forex was sourced from CBN at the official rate of N116.62 but access bank wants the repayment at N127 to a dollar. AP petitioned CBN over the rate differential . "However, the CBN involvement at the insistence of AP, Falasinu said, infuriated access bank which threatened to go to court even when it was yet to provide any satisfactory answer to apex bank's question" From their story, it would appear that the case is more of disagreement over what is due than inability to pay. |
Re: African Petroleum Is Bankrupt Says Access Bank by jumobi1(m): 2:11pm On Jul 21, 2009 |
Cant AP choose to pay in either Dollar or Naira. or do they want inlfation adjustment? And Access Bank is stupid, What do they think interest rates are for? |
Re: African Petroleum Is Bankrupt Says Access Bank by nich(m): 3:10pm On Jul 21, 2009 |
anoda 'economics' movie in the making. 'guess we'd all have to be patient to see who the scriptwriters/playwrights are. |
Re: African Petroleum Is Bankrupt Says Access Bank by larez(m): 3:11pm On Jul 21, 2009 |
The answers all lie in the small prints of their agreements. Access Bank has opened up a potential liability hole by creating a threat to the share price of the company by attempting to induce panic. But then, in Nigeria, it could be a concerted ploy by both Access Bank and A/P to force shareholders to panic and sell, while they buy back the stocks at a reduced rate and retire them internally. This will in-turn raise the value of the company. EFCC should begin their investigations into this drama because I personally believe that this is a case of the more you see, the less you know. Racketeering is widespread and profitable in Nigeria's financial markets. The question to ask yourself is why Access Bank will try this case in the news media, while they have supposedly filed a case. I gag order should have been in place upon filing. |
Re: African Petroleum Is Bankrupt Says Access Bank by tomylee: 4:17pm On Jul 21, 2009 |
It is not the duty of access bank to label AP a bankrupt company. I think this whole issue is a drama by access bank to get their money back from the AP. What financial evidence do they have to prove this bankrupcy thing apart from their so called unpaid loan. |
Re: African Petroleum Is Bankrupt Says Access Bank by Greycells(m): 5:00pm On Jul 21, 2009 |
larez: tomylee: Both post says it all. I also believe that AP Plc gone bankrupt is not the same thing as Femi Otedola gone bankrupt. Dt company na shared risk oh. I may be corrected. Peeps just spew ignorance from the top of their voice. Many should just pray dt none of the heavily capitalized Plcs go down na major gbege oh. It will trigger armageddon for some families. |
Re: African Petroleum Is Bankrupt Says Access Bank by olekus(m): 5:12pm On Jul 21, 2009 |
AP Faults Access Bank Over $35m Debt By Kingsley Ighomwenghian, Finance Editor, Lagos The Chief Operating Officer of African Petroleum Plc (AP), Mr. Tunde Falasinnu, has faulted Access Bank Plc,s request that the petroleum marketing firm be wound up for failure to pay debt of about $35 million. According to a newspaper advertorial, Access Bank has told a Federal High Court sitting in Lagos that AP is insolvent hence it could not pay the $35 million debt. The bank has therefore asked the company be wound up. However, Falasinnu said at a press briefing on Monday that AP has refused to pay because the bank was requesting for the debt to be paid in dollars and at black market rate. He said that the debt arose from facility by the bank to finance the importation of petroleum products. He explained that pursuant to financing of the vessel, AP opened a form M with at the Central Bank of Nigeria (CBN) and letter of credit was opened at the rate of N116 to a United States dollar. He added that trouble started when Access Bank on December 2, 2008 sent a debit advice, saying the money should be paid using an exchange rate of N127 to a dollar. He said AP objected to the rate and petitioned the CBN, saying the company was willing to adhere to the final decision of the apex bank on the issue. ,,We are still awaiting the decision of CBN on the matter before we saw the advertorial requesting for the winding up of the company. The request sounds very ridiculous. We cannot just allow ourselves to be cheated because if we pay that amount, the bank is ripping us off to the tune of N440 million in just one transaction,,, he said. The AP boss said that the company has never denied owing Access Bank, ,,but consider the demand inappropriate since it will amount to round tripping to use the same documents to purchase foreign exchange from the CBN.,, He said that AP made this position known to the Access Bank via a letter dated June 3, 2009. He said that said the action of the bank might have ulterior motives. In its petition to Director, Banking Supervision Department, CBN, dated May 15, 2009, AP had explained that, ,,We opened an account with Access Bank in 2007. They availed us a $50 million facility on May 12, 2008 for the purpose of importing petroleum products through letter of credit. On July 25, 2008 a letter of credit was opened in favour of Glencore Ennergy UK Limited on our behalf by Access Bank. The receiving bank- BNP Paribas SA. Amount on the letter of credit $38,973,000. The actual amount negotiated and paid was $35,153,822.15 as contained in the commercial invoice dated August 2008 by Glencore Energy. On December 2nd December 2008, Access Bank advised through a debit note dated 1st December that our account has been debited with N4,464,353,413.05 being the Naira value of $35,153,822.15 at N126/$. We objected to this rate and informed them of the official rate of N116.67 by CBN as at that date through our letter dated 2nd December 2008. The bank has done four LCs before this disputed one. The LCs were paid according to normal documentary credit through the CBN bid options.,, AP told the CBN that the request by the Access Bank to pay them in foreign currency is inappropriate for following reasons: The Form M and Proforma Invoice were use to open a LC for the import; the suppliers have been paid using the CBN fund at the rate as at November 2008 or earlier; using the same forms to purchase Forex will amount to round tripping, an offence the company said it will not associate itself with. http://www.independentngonline.com/busi/lead/article01 |
Re: African Petroleum Is Bankrupt Says Access Bank by mrperfect(m): 5:42pm On Jul 21, 2009 |
God will not allow any to fall, because of the families those companies feed. |
Re: African Petroleum Is Bankrupt Says Access Bank by calyx: 5:56pm On Jul 21, 2009 |
He explained that pursuant to financing of the vessel, AP opened a form M with at the Central Bank of Nigeria (CBN) and letter of credit was opened at the rate of N116 to a United States dollar. So AP wants to pay back at the 116/$ rate they borrowed the money abi. What was the naira/$ rate at the time they want to repay. Consider the cost of the foreign transaction and all. Is the bank a charity organisation Abeg make una go pay wetin una owe jare |
Re: African Petroleum Is Bankrupt Says Access Bank by dedeike: 6:10pm On Jul 21, 2009 |
this is bad news.i just hope the analysis by larez is true. our economy cannot afford such bankruptcy in these days of recession. |
Re: African Petroleum Is Bankrupt Says Access Bank by larez(m): 6:27pm On Jul 21, 2009 |
calyx: There is the base rate of the transaction which is locked as of the date of this transaction. Bank charges and interests are a separate affair from this. The exchange rate at the date and time of the transaction is locked. Anything else will be based on this locked rate. |
Re: African Petroleum Is Bankrupt Says Access Bank by calyx: 6:37pm On Jul 21, 2009 |
There is the base rate of the transaction which is locked as of the date of this transaction. Bank charges and interests are a separate affair from this. The exchange rate at the date and time of the transaction is locked. Anything else will be based on this locked rate. If your suggestion here is correct, then why is it not in black & white. Access bank would probably have gone to court based on an endorsed offer/agreement. if they agreed to terms then they should pay or at least try to reach a reasonable compromise |
Re: African Petroleum Is Bankrupt Says Access Bank by sley4life(m): 8:27pm On Jul 21, 2009 |
says who |
Re: African Petroleum Is Bankrupt Says Access Bank by akintun: 10:32pm On Jul 21, 2009 |
Insolvency law allows a creditor to go to court after fullfiling certain conditions and demand that its debtor should be liquidated compulsory. The case between Access bank and AP would be decided depending on the contract signed. If AP did not sign a forward contract then it will have to pay back the money it owes the bank using the exchange rate on the day Access bank transfered money to AP business partner's bank abroad. |
Re: African Petroleum Is Bankrupt Says Access Bank by BlackRevo: 12:28am On Jul 22, 2009 |
akintun: Good to have you here this is what we need on nairaland, those who have the economic and legal experience of these issues to make things more clear to us outsiders seeing it from a different angle. |
Re: African Petroleum Is Bankrupt Says Access Bank by Nezan(m): 10:32am On Jul 22, 2009 |
dedeike: |
Re: African Petroleum Is Bankrupt Says Access Bank by MrCrackles(m): 10:50am On Jul 22, 2009 |
larez: I quite agree with this. . . . . Dat is the norm pretty much everywhere else! |
Re: African Petroleum Is Bankrupt Says Access Bank by larez(m): 11:33am On Jul 22, 2009 |
MrCrackles: Even though I had made that statement earlier, another scenario occurred to me as well. In very rare and certain conditions, there may be a stipulation where the transaction may be based on a 3 day average preceding the date of closing. This you will find in cases such as commodities in terms of final price for the agreement. What this means is that the price at the date of closing will be averaged with the trading price of the 2 previous days. I am not so sure that this is applied in foreign exchange trades though. But then with Nigeria, you never know. This is why i am adding this statement. |
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