Afromedia In Court Battle With Standard Chartered Bank Over N3.15 billion Loan

Afromedia has revealed that it will fail to meet the deadline to release its Audited Financial Statements for the year ended 31 December 2022 due to a lawsuit the firm is battling.

The company was hit with a lawsuit that has prevented Afromedia from accessing its accounts to enable the firm to prepare its financial record for last year. 

Afromedia said the company’s accounts were frozen after a Garnishee Order was given against the company on 8 December 2022. 

This will affect the ability of the company in releasing the first quarter Unaudited Financial Statements for the period ending 31 March 2023. 

Although the firm didn’t mention which company secured a court order to freeze its accounts, Prime Business Africa learnt that there’s a court case between Afromedia and Standard Chartered Bank Limited. 

Stanbic IBTC had extended a N3.15 billion loan to Afromedia under its former Managing Director, Akin Ire Olopade, in 2010. The court case is still ongoing. 

In a recent statement obtained on Wednesday, 22 March 2023, Afromedia said it: “wishes to inform its valued shareholders, investing public, Nigerian Exchange Limited and key stakeholders that it will be unable to meet the deadline of 31st March 2023, on which it is required to file the Audited Financial Statements for the year ended 31st December 2022 (2022 AFS) and consequently will not be able to file the 1st quarter Unaudited Financial Statements for the period ending 31st March 2023 (2023 Q1 UFS ) in accordance with the Listing Rules of the Nigerian Exchange Limited. 

“On the 8th of December 2022, a Garnishee Order Nisi was given against the Company which resulted in all its bank accounts being frozen and funds therein rendered inaccessible. The Company has appealed the Order and is hopeful that the Garnishee Order would be vacated with dispatch. However, due to this Order, the Company is unable to fulfil its financial obligations towards the preparation of its Audited Financial Statements as well as prepare for its Annual General Meeting within the period stipulated by regulation. 

“The Company shall file the 2022 Audited Financial Statements and the Unaudited Financial Statements for the first quarter of 2023 on or before the 29th of June 2023 and 29th of July 2023 respectively.”