Innoson Nigeria Limited, Nigeria’s indigenous vehicle production company, has asked Guaranty Trust Bank to convert the N8.7-billion debt the latter ‘owes’ it to shares.
Innoson, in a statement over the weekend, noted that it was aware that GTB had made representations to a Federal High Court.
It noted that the affidavit had made a case that its “banking operation and capital base will be adversely eroded if it complies with the order of the court.”
The solution, according to the bank, is that it should as a “matter of utmost urgency” convert the sum or part of it into shares and allot the shares to Innoson Nigeria Ltd.
“This will save taking it (the bank) over in the manner Innoson is doing,” the bank argued in court papers.
However, Innoson criticised GTB for approaching a Federal High Court in Ibadan for a court injunction to restrain Innoson from continuing to levy execution against it.