The management of African Petroleum Plc on Monday faulted the alleged plans by Access Bank to wind up the company over a $35m debt under the provisions of the Companies and Allied Matters Act.

The company’s Managing Director, Mr. Tunde Falasinnu, who spoke in Lagos said while it was true that the company was owing the bank, some aspects of the agreement, especially the exchange rate that governed the repayment had become contentious.

Access Bank, in court documents published in several newspapers on Monday, had claimed that AP was insolvent; hence it could not pay the $35m debt. The bank has therefore asked that the company be wound up,

contd on www.proshareng.com

No I dont believe they are.

I know FO is the chairman though and I wonder what is really going on.

Its really annoying cause the these guys are messing with other peoples investments (myself included)

I came across this on Proshare,
Who they hell do these guys think they are messing with MY MONEY!
Lets hope eveyone invloved is exposed for what they are.


The Truth About Nothing - Access Bank Plc Vs. Ap Plc
Editorial - Access Bank Plc vs. AP Plc (Suit No. FHC/L/CS/644/09)

"Our successes and our failures in life can be traced to how well or how badly we deal with the inevitable conflicts that society presents us."

The publication of the application for winding up proceedings against AP Plc by Access Bank Plc based on a motion ex-parte issued on July 13, 2009 represents a ‘conflict’ the Nigerian financial market would have to watch keenly as a test of its resolve to truly move into a regime of sound corporate governance, improved disclosures and a culture of best practice risk management by all quoted firms; and not just our banks.

The development offers much more.

It brings to fore the following concerns:
The recurring status of AP Plc as the poster boy of major issues in the market –

o The Retired Justice Ekop Commission of Enquiry (2002-2003) investigated the privatization of AP Plc and its many fallouts.

o During its sittings, it subpoenaed Alhaji Abba Gana, then MD/CEO of AP Plc who obtained a court injunction that enabled him not to appear before the commission to answer allegations on the handling, mechanism and management of the firm prior to privatization.

o The enquiry invited fourteen (14) banks who appeared before the commission as well as NNPC and the BPE.
oThe issues at stake focused on the alleged N23bn hidden debt not disclosed during the privatization of the company,


http://www.proshareng.com/news/singleNews.php?id=7191

AP Rebuttal in Punch 220709


ACCESS BANK/ AP SAGA:
THE FACT OF THE MATTER – The AP Plc Response

Our attention has been drawn to the various publication of Suit No: FHC/L/CP/644/2009 filed by Access Bank plc against African Petroleum plc in the Punch, Thisday and Vanguard of 20th and 21st of July 2009.



This is to assure all our creditors and esteemed investors that African Petroleum plc is a strong, vibrant company with experienced Management and Board and definitely not insolvent. The action of Access Bank Plc is about a disputed debt arising from a facility granted by Access Bank to AP for the purpose of opening Letters of Credit (LC) for the importation of refined petroleum products. Upon maturity of the LC, Access Bank debited AP Plc at the converted rate of N127 to one US Dollar this was at 2nd December 2008. (Letter attached as Exhibit 1 - http://www.proshareng.com/newsletter/avp.php)



AP immediately protested the rate of the exchange applied by Access Bank pointing out to them that Central Bank of Nigeria (CBN) spot rate on 30th of November 2008 which was the maturity date of the LC and was N116.62 to on US Dollar and even the black market rate was between N119 and N122 to one US Dollar at that time. However, we stated our willingness to pay but at the appropriate rate via our letter dated Dec 2, 2008 (Letter attached as Exhibit 2 - http://www.proshareng.com/newsletter/avp.php).



Several correspondences have been exchanged in a bid to amicably resolve this matter but were unsuccessful. AP Plc then further petitioned the Central Bank of Nigeria (CBN) by the letter dated May 15, 2009 (attached as Exhibit 3 - http://www.proshareng.com/newsletter/avp.php) to adjudicate on this matter. CBN’s decision was being awaited when Access Bank filed the suit. Our lawyers have since filed appropriate papers in court as this is definitely not a case for winding up,


[b]I rest my case[/b]

NLanders,una 2 much.
The ony media forum taht gives balanced news reporting.

This is a huge joke right,do I see the hands of chemical Ali in all of this?
$35 million dollars,is that all AP is worth?

PROSHARE BREAKING NEWS: AP Plc pays off $35M DEBT to ACCESS BANK

Lagos, Nigeria, August 4, 2009, 1512hrs: The dispute between Access Bank and African Petroleum (AP)Plc, over AP’s delay in paying its outstanding $35 million (about N5.6 billion) loan facility to the bank has ended amicably.This afternoon, African Petroleum Plc issued an Afribank draft number 381342 dated 4/08/09 for the sum of N2, 945, 305,039.69 in favour of Access Bank Plc.

Going by the agreement mutually entered into by the parties, the $35,153,822.15 debt amounts to N4,499,689,235.20 at an agreed rate of N128/$. The value of the draft represents net settlement after taking into consideration AP’s credit balance of N1, 554, 384, 195.51 on its account with the bank.

The work-out plan drawn up, delayed by a day has now been met in full and AP Plc has discharged its obligations under the agreement.

You will recall that this approach was discussed in our article titled Crisis management and resolution: Wind-ups or Work-outs? (http://www.proshareng.com/articles/index.php) published on Friday, July 31, 2009.

This development is welcome and the import of the resolution commended for all parties in similar disputes that will occur as we wade through this difficult times.

www.proshareng.com

rasputinn:

This is a huge joke right,do I see the hands of chemical Ali in all of this?
$35 million dollars,is that all AP is worth?

Don't be surprised that if they worth less than that, after all, Lehman Brother; top 5 largest investment bank was liquidated by more than 90% of its networth, Merryl Lynch sold itself to Bank of America, so please I wouldn't be surpised if that's all they are worth.