N7.3B debt: Dana Motors, AMCON settle out of court

In a bid to reach an amicable out-of-court settlement, Dana motors and its Chairman Ramesh Hathiramani and the Assets Management Corporation of Nigeria (AMCON) have filed a term of settlement before a Federal high court sitting in Lagos, Southwest Nigeria.

AMCON had sued Dana Motors Limited and Ramesh Hathiramani jointly and severally and sought a court order to recover cumulative debts and accrued interests to the tune of N7.3 billion.

Thereafter, the Defendants approached AMCON to restructure their loans and dispose of all the Securities for the loans listed with a view to amicably resolve the dispute taking into consideration their business relationship and the Parties agreed to settle matters.

The term of the settlement includes that all out-of-pocket expenses incurred in the arrangement, administration and recovery of the facility and/or prosecuting or defending any legal action, including but not limited to stamp duty, solicitors’ charges, travelling expenses, insurance premium(s) and other statutory fees, shall be borne by the Defendants and may be debited to the account of the Defendants without further recourse.

The Parties also agreed to urge the Honourable Court to set aside the existing Default Judgment dated October 7, 2016.

They agreed not to institute or commence any other legal proceedings in connection or related to the claim or any issue which forms part of or the whole subject matter of Suit No. FHC/L/CS/390/2016.

The term of settlement has already been entered by the court as a judgement of the court.