$2.58m, N276m Debts: Nova Bank Asks Court to Wind Up Sunrise Products

Wale Igbintade

Nova Commercial Bank has petitioned the Federal High Court in Lagos, requesting an order to wind up Sunrise Products Ltd for failing to pay a debt of $2,587,891.21 and N276,567,150.63 allegedly owed to the bank.

The bank claims that Sunrise Products Ltd is bankrupt and, despite repeated demands and the statutory three-week notice required under the Companies and Allied Matters Act (CAMA), the debtor has failed to settle the outstanding debt.
The petition was filed on December 19, 2024, by the bank’s lawyer, Mr. Kemi Balogun (SAN), under case number FHC/L/CP/2357/24.

In the petition, Nova Bank is seeking permission to publish the winding-up petition in the Federal Government Official Gazette, a national daily newspaper, and other local publications circulating in Lagos State, where the respondent’s registered office is located, in accordance with the Companies Winding-up Rules of 2001.

Nova Bank also informed the court that there is a significant risk that Sunrise Products Ltd may dissipate and dispose of its assets within the jurisdiction, which could undermine any potential judgment in the bank’s favor.

As a result, the bank has filed a motion seeking to protect the debtor’s assets by joining the Central Securities Clearing System (CSCS) Plc and 21 other banks as respondents.
In its motion, Nova Bank seeks several orders, including the appointment of the Deputy Chief Registrar of the Federal High Court, Lagos, as a provisional liquidator to oversee the company’s affairs pending the winding-up order.

Some of the orders sought include: “An interlocutory injunction to prevent the respondent, its directors, staff, and agents from withdrawing or tampering with the company’s funds in the listed banks.
“An order restraining the respondent from dissipating, transferring, or alienating its fixed and movable assets.

“An order requiring the CSCS and the 21 respondent banks to disclose, within five days, details of the respondent’s assets, funds, real estate, and other financial instruments worth the sum of $2,587,891.21 and N276,567,150.63, representing the outstanding debt.”