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.