Diamond Bank Plc has begun moves to declare an oil magnate, Mr. Emeka Offor, bankrupt following an alleged N2bn debt owed by his company, Chrome Oil Services.

According to a document obtained by SUNDAY PUNCH, the bank had granted a series of loans to Chrome oil which amounted to N750m, but the firm defaulted in the payment of the facility which had accrued to over N2bn by December, 2011.

Investigations further showed that the oil firm allegedly reneged on its promises to pay the loan contrary to the agreement it entered with the bank, before it was granted the facility.

According to the bank, after repeated demands to pay the debt, then in excess of N1.3bn, the company in October, 2006 made a proposal to the bank to pay N750m as final settlement within 12 months, through monthly instalments of N62.5m with effect from December, 2010.

“The bank accepted the offer on the condition that if the company failed to abide by the monthly payment agreement, the concession granted it would be cancelled and it would be liable to repay the total outstanding sum, including the interest suspended.

“It also threatened to sell the company’s property in Asokoro, Abuja, which the company mortgaged to it. Offor who personally guaranteed the loan repaid only one instalment of N62. 5m within the 12 months limit that the company set out,” the bank said on Friday.

When all efforts by the bank to recover the money failed, it served Offor, a chieftain of the Peoples Democratic Party and his company notice that the concession had been withdrawn and that the quantum of the indebtedness, with interest application that was hitherto suspended, had increased to N2bn.

A letter to Offor dated March 1, 2012, read, “Take notice that as a consequence of your company’s unwillingness to repay its debts and in deference to your representation to the bank in the deed of personal guarantee, which you voluntarily signed and which it relied on to grant the loans that led to the debt, we hereby call-in your guarantee by demanding that you personally repay the debt within seven days from the date of the letter, failing which the bank will commence steps to declare you bankrupt for inability to repay your debts, to enable a liquidator to be appointed over your assets for it to recover its funds.”

Offor could not be reached on Friday as he did not respond to several calls and a text message sent to his phone by our correspondent.

The text read, “Sir, I will like to get your comment on the moves by Diamond Bank to declare you bankrupt over a N2bn debt.”

http://www.punchng.com/news/diamond-bank-moves-to-declare-offor-bankrupt-over-n2bn-debt/

I never knew its still possible for an individual or company to owe a single bank that much Naija i hail thee this is happening despite the said Sanusi's sanitisation of the banking sector

And that illitrate from Oraifite goes about displaying wealth.Nigeria i weep for thee.

tunnytox:

I never knew its still possible for an individual or company to owe a single bank that much Naija i hail thee this is happening despite the said Sanusi's sanitisation of the banking sector

The article clearly states that this loan was taken before October 2006, well before Sanusi's tenure. It also makes it clear that Of for did not borrow 2bn Nair a, rather the initial principal was 750m which has now swelled to 2bn.

Sanusi cannot help you understand written English.

Ok thanks

Ekans:

And that illitrate from Oraifite goes about displaying wealth.Nigeria i weep for thee.

eh! hold ur peace, I know the man and worked with them 4 a while b4 I left. The story is broader than that but what is written here is just about what the parties in question want the public to know.

^^^^, the bottom line is the company owes the bank to the tune of 2 bill.
that must be the summary of the jist, the detail wld have been trashed out, is that not?

these people live on borrowed bank money.

I am surprise by this news.

But Emeka Ofor was always been painted as super rich man nah.

Why he is owing paltry sum of N2Bn.

The bank is still the loser in any case.  Not especially if the dude's asset is registered with names other than his.  The only property they may be able to touch is one that has been pledged as collateral, which in reality may not be worth the entire amount owed by the mofo.

RICHIE BOI:

these people live on borrowed bank money.

correct. Where they get the clout to participate in political activities that will give them prominence to cover their asses.

[b][/b]

texazzpete:

The article clearly states that this loan was taken before October 2006, well before Sanusi's tenure. It also makes it clear that Of for did not borrow 2bn Nair a, rather the initial principal was 750m which has now swelled to 2bn.

Sanusi cannot help you understand written English.

Pete, U are most wasted!
"Sanusi cannot help you understand written English"? LMAO
Good points though.

Doubt if they will succeed; that is how Fidelity bank is chasing Raymond Dokpesi but no way.

tunnytox:

Offor, a chieftain of the Peoples Democratic Party

This explains everything. The banks will usually grant "big men" in politics loans even without collateral with the understanding that they get huge monetary deposits looted from the government coffers.

Which bank was it that opened an account in Atiku's name and even with zero balance, he kept on writing checks and these checks were honored each time even as the account went into negative in the region of hundreds of millions?

Serves the banks right.

nigerian banks are actually run by men in BLACK, ever wondered for a minute where armed robbers stored their blood money, the banks, politicians, the banks, ritualist and 419s, the banks.
i personally know one of the big shots in the then spring bank, this guy will launder any money, i repeat any money for you.
so serve them right. mr offor kindly eat your vegetable. 750 mill.,graduating to 2 bill. thats nothing .

when they will not give loans to real investors,what do expect?

Which bank was it that opened an account in Atiku's name and even with zero balance, he kept on writing checks and these checks were honored each time even as the account went into negative in the region of hundreds of millions?

Please tell me this didn't happen!

What is this? Bad debt
A bad debt is an amount that is written off by the business(diamond bank) as a loss to the business (diamond bank) and classified as an expense because the debt owed to the business (diamond bank) is unable to be collected, and all reasonable efforts have been exhausted to collect the amount owed. This usually occurs when the debtor has declared bankruptcy or the cost of pursuing further action in an attempt to collect the debt exceeds the debt itself.

A bad debt represents money lost by a business (diamond bank) which is why it is regarded as an expense.

ode remo:

nigerian banks are actually run by men in BLACK, ever wondered for a minute where armed robbers stored their blood money, the banks, politicians, the banks, ritualist and 419s, the banks.
i personally know one of the big shots in the then spring bank, this guy will launder any money, i repeat any money for you.
so serve them right. mr offor kindly eat your vegetable. 750 mill.,graduating to 2 bill. thats nothing .

I can confirm that this is very true. As part of their marketing tactics, they sell their ability to bypass CBN /EFCC checks designed to counter money laundering.

No need to declare him bankrupt.He has the money but do not want to pay.Make him pay

I wish I had Emeka Offor's brief.

bankers are vultures,N750 million in 06 equal to N2bn in 2012
i blv the loan wasnt collaterised bcus of the bigman talk to bigman attitude of doing business in Nigeria.
if i need a loan of N1.ooo naira,they will ask me to bring my great gran ma.
oloshi bankers ( same world over ),they should just bundle up the loan to AMCON and stop complaining.

No wonder this man was trailing Mbadinuju, his political godson. Ibos and money(business). Mbadinuju did n't dance to his tune and now Offor is in debt. Its good for him and those who do business with Nigeria's democracy. Political Godfathers should rot in hell.

Is there anything left to say about banks, bankers and their business. Hand in glove with the destructors of this country. Laundry men of Ali Baba. When it backfires they cry wee, wee, wee all the way home.

violent:

Please tell me this didn't happen! 

I just checked and surprise, surprise, it's the same Spring Bank!

http://www.nigeriamusicmovement.com/nigerian-bank-nigeria-intercontinental-bank-plc-atiku-abubakars-piggy-bank

http://65.163.15.201/news/public/newsinfo.php?nid=8608

This is a funny quote:

“Atiku was issuing out cheques even without putting a corresponding amount in the account. Because of his personality and the office he held, we continued to honour his cheques,”

hbrednic:

bankers are vultures,N750 million in 06 equal to N2bn in 2012

Stop whining. A bank is not a charitable organisation. Do you see me complaining that the plot of land i would have bought for 1m in Ajah in 2006 is now N8m?

This is the same Emeka Offor and Chrome Consortium that Obasanjo awarded the Turn Around Maintenance contracts to some few years back.

I wonder why the move to declare him bankrupt. He is the main reason why Nigeria's refineries are not working. HE SHOULD BE ROTTING IN JAIL AND NOT BEING DECLARED BANKRUPT. WTF!

The stock market crash that happened in 2008 is the reason many loans went bad and banks struggle. It affected the economy at large, individuals, households, businesses and companies. If only all that money were invested in the real sector. It's a learning point for the economy.

^^^^, that make perfect sense, next tym i wld blame the stock market crash on my headache.
when are we going to take responsibility for our recklessness and inept attitude in the work environment.

offor wey dey share money anyhow? Dis is hillarious! So dis dude has bn sharin diamond's fund all dis while? Dis must be a joke!

Emeka Offor again?

Ran Apex bank with immense incompetence until the bank became insolvent.
Scuttled Orjis political career
Now he is about to be declared bankrupt again?

Ibo people and their lack of solid business sense  .    .    . We need to annihilate them all before they ruin Naija economy.

stagger:

This is the same Emeka Offor and Chrome Consortium that Obasanjo awarded the Turn Around Maintenance contracts to some few years back.

I wonder why the move to declare him bankrupt. He is the main reason why Nigeria's refineries are not working. HE SHOULD BE ROTTING IN JAIL AND NOT BEING DECLARED BANKRUPT. WTF!

So Offor was one of the ppl who ruined our refineries?