Sunrise Products Ltd is currently facing serious financial trouble. Nova Bank Limited has approached the Federal High Court in Lagos, asking the court to shut down Sunrise Products because the company has failed to pay back a significant debt. This debt amounts to over $2.5 million and about N276 million, which Sunrise Products allegedly owes to Nova Bank.
The bank claims that Sunrise Products is bankrupt. Despite multiple requests for payment from the bank, the company has not been able to settle its debts. The bank has followed legal procedures, including sending a formal notice that requires Sunrise Products to respond within three weeks, but the company still hasn’t paid or made arrangements to pay the debt.
On December 19, 2024, Nova Bank’s lawyer, Mr. Kemi Balogun, filed a petition with the court, asking for permission to publicly announce the request to wind up Sunrise Products. This announcement would need to be published in the Federal Government Official Gazette and a national newspaper, as well as other newspapers in Lagos where Sunrise Products operates.
The bank also expressed concern to the court that there is a serious risk that Sunrise Products might sell off or hide its assets to avoid paying the debt. Therefore, the bank is asking the court for additional orders to protect the company’s assets. If the court rules in favor of the bank later, they want to ensure that there are still assets available to satisfy the debt.
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In this legal action, Nova Bank has included the Central Securities Clearing System (CSCS) and 21 other banks in the case to help safeguard Sunrise Products’ assets. The banks involved include well-known institutions like Access Bank, First Bank of Nigeria, and Zenith Bank, among others.
The bank’s petition requests several specific actions from the court:
- They want the Deputy Chief Registrar of the Federal High Court in Lagos to be appointed as a provisional liquidator. This person would take control of Sunrise Products’ operations while the court decides on the winding-up order.
- They seek an injunction, which is a legal order to prevent Sunrise Products and its employees from accessing or withdrawing any funds from their accounts until the court has made a decision about the winding-up order.
- They also want to stop Sunrise Products from selling or transferring any of its assets until the court makes a ruling.
- Lastly, they want the CSCS and the 21 banks to provide detailed information about all of Sunrise Products’ assets and funds, up to the total amount they owe, within five days of being notified by the court.
Nova Bank argues that since the three-week notice period has passed without any payment from Sunrise Products, the company is clearly unable to pay its debts. They emphasize that if the court does not intervene to protect the company’s assets, there is a real risk that Sunrise Products will dispose of its assets, making it impossible for the bank to recover the money owed.
The bank insists that granting their request is essential to protect the interests of depositors and ensure that any funds owed can still be recovered. They believe that taking these legal steps is crucial for achieving justice in this situation.
