Big Trouble For Emzor Pharmaceuticals As Major Move To Fold It Up Begins

Stella Okoli, the prominent Nigerian industrialist and CEO of Emzor Pharmaceuticals Industries Limited, is facing financial turmoil following allegations of obtaining multi-billion Naira loans from several banks.

Nova Merchant Bank Limited has initiated legal action by filing a winding-up petition against Emzor Pharmaceuticals Industries Limited at the Federal High Court in Lagos to recover a loan amounting to N6.205 billion. The case, with reference number FHC/L/CP/1044/2024, has been assigned to Justice Chukwujekwu Aneke.

The respondents named in the suit include Central Securities Clearing System Plc, Access Bank Plc, Ecobank Nigeria Limited, Citi Bank Plc, Fidelity Bank Plc, First City Monument Bank Plc, First Bank of Nigeria Limited, Guaranty Trust Bank Plc, Jaiz Bank Plc, Keystone Bank Ltd, Polaris Bank Plc, Providus Bank Plc, Stanbic IBTC Bank Plc, Sterling Bank Plc, Standard Chartered Bank Plc, Union Bank of Nigeria Plc, United Bank For Africa Plc, TAJ Bank Limited, WEMA Bank Plc, and Zenith Bank Plc.

According to Mr. Oluwakemi Balogun SAN, representing Nova Merchant Bank, the petition was based on Emzor Pharmaceuticals Industries Limited’s failure to comply with a three-week demand notice as required under Section 572 of the Companies and Allied Matters Act (CAMA) 2020. Despite the expiration of the notice period, the respondent has allegedly not made payment or provided satisfactory security to settle the debt.

In an affidavit supporting the motion, Azeezat Adeniji, a Principal Officer at Nova Merchant Bank, stated that Emzor Pharmaceuticals Industries Limited obtained a credit facility consisting of $4,583,333.00 for raw material imports and N500,000,000.00 for working capital. The facilities were secured with an All Asset Debenture over fixed and floating assets and a Personal Guarantee from Stella Okoli, the Managing Director.

The petitioner further claimed that Emzor Pharmaceuticals Industries Limited’s persistent default prompted the engagement of legal counsel and the issuance of demand letters and statutory notices, which were allegedly disregarded by the respondent.

Consequently, Nova Merchant Bank seeks court orders appointing a Provisional Liquidator to oversee the company’s affairs, restraining the respondent from accessing its funds, and preventing the disposal of its assets pending the court’s decision on the winding-up petition.

Justice Aneke has scheduled the next hearing for July 12, 2024, to adjudicate on the matter.