AMCON files bankruptcy suit against Milan Industries’ Chairman, Rajesh Valecha, Directors over alleged N42bn debt

The Asset Management Corporation of Nigeria (AMCON) has filed bankruptcy proceedings before the Federal High Court in Lagos against the Chairman of Milan Industries Limited, Milan Nigeria Ltd and Milan Beverages Ltd, Rajesh Valecha and four other directors of the companies over their alleged inability to repay a N42 billion debt.

The other directors named in petitions are, Ramesh Valechha, Vikram Valechha, and Akin Femiwa Akinsola.

Already, Justice Daniel Osiagor has granted an order permitting Asset Management Corporation of Nigeria (AMCON) to serve the Chairman, Board of Directors of Milan Industries Limited, Mr Ramesh Valechha and three of it’s Directors, court processes through substituted means over alleged N41,511,758,031.14 indebtedness.

Other affected Directors are Rajesh Valechha, Vikram Valechha and Akin Femiwa Akinsola.

Justice Daniel Osiagor gave the order while ruling on an ex parte application filed by AMCON’s counsel, Mr. Kunle Ogunba SAN to allow the Corporation serve the defendants in the suit processes via substituted means.

The Court granted the Application upon reading the affidavit in support, exhibits attached and the Written Address dated and filed on the 20th March, 2024, deposed to by Moses Festus, a legal practitioner with the law firm of Kunle Ogunba & Associates.

After hearing Mr. Ogunba, counsel for the creditor move in terms of the motion paper, the court made the following orders; “That leave is granted to the Applicant herein to effect service of Originating Processes (Creditor’s Petition and Affidavit of Non-Multiplicity of action) and all other processes to be filed in this proceeding on the Debtor through any of the following substituted means to wit; by posting at the debtor’s last known address at Road 2, G17/18, VGC Ayali, Lagos State, Lagos State.

“By advertising same in any edition of the dailies/newspapers circulating within the jurisdiction of this Honourable Court.

“By serving same on the law firm of A.B Kasunmu Chambers, at 284 Murtala Mohammed Way, Alagomeji, Yaba, Lagos State, being Solicitors to the parent companies (Milan Industries Limited and Milan Nigeria Limited.

“That an order is granted deeming the Service of the processes as stated in (1) above as proper service in the peculiar circumstance”.

The court has adjourned the matter till 18th of June, 2024 for hearing.

AMCON had in its petition in suit number FHC/L/BK/05/2023 stated that Ramesh Valechha, who resides at LSPDC Flats Ground Floor Adeola Odeku Victoria Island, Lagos State is one of the alter-egos of the indebted company.

The petitioner stated that Ramesh Valechha directly oversaw the day to day affairs of the Companies by virtue of which the Companies were collectively availed facilities by Skye Bank Plc. (now Polaris Bank Limited) and are now collectively indebted to the Bank in the sum of NGN41,511,758,031.14 (Forty-One Billion, Five Hundred and Eleven Million, Seven Hundred and Fifty-Eight Thousand, Thirty-One Naira, Fourteen Kobo).

It stated that by formal requests for initial and additional facilities vide letters dated 7th April, 2010; 12th August, 2010; 9th December, 2010; 9th December, 2010; 18th February, 2011; and 8th June, 2012, the Debtor Companies under the leadership of the Debtors requested various facilities from Skye Bank Pic.

The Debtor Companies, (Milan Industries Limited; and Milan Nigeria Limited) were thus collectively availed U.S. Dollars and Naira loan facilities respectively vide offer letters from Skye Bank Plc, dated 14th May, 2007; 4th February, 2010; 6th April, 2010; 16 February, 2011; and 14th June, 2012 which were accepted and duly drawn down by the said Debtor Companies.

It stated that Skye Bank Plc availed the Debtor companies several facilities, principally for the construction of a 361-room Hotel Facility known as Intercontinental Hotel (now Lagos Continental Hotel), situate at 52, Kofo Abayomi Street, Victoria Island, Lagos.

Similarly, in Suit number FHC/L/BK/02/2023, Justice Yellim Bogoro, of the Federal high court in Lagos has granted a Motion ex-parte restraining Vikram Valechha, a director in Milan Industries Limited and Milan Nigeria Limited from operating, withdrawing from or dealing with the Debtor’s funds in any Bank or Financial Institution within Nigeria pending the hearing and final determination of petition filed by AMCON.

Justice Bogoro also directed Banks or Financial Institutions in Nigeria harbouring the Debtor’s account{s) to furnish the Creditor or its firm of Solicitors, the details of the credit outstanding in the Debtor’s account(s) within 7 (seven) days of receipt of the enabling Order.