Meanwhile, in the affidavit in support of the motion deposed to by Abubakar Isa, a staff of AMCON, the corporation described the loan as a toxic loan of eligible bank assets transferred to it by law to recover.
AMCON told the court that the 1st respondent (the firm), which has its office in Kaduna State, had collected a N333 million loan facility from Bank PHB Plc (now Keystone Bank Ltd) on Jan. 31, 2008 “for the purpose of purchasing 5, 000 pieces of motorcycles to the 2nd defendant and its workers through the Nigeria Labour Congress of its state vide an irrevocable standing payment order (ISPO}.
“That the 2nd respondent is the state government of the beneficiaries who equally gave ISPO guarantee for the repayment of the loan through deduction from the salaries of its workers and make payment to the bank but failed to do so.
“That the loan was for the agreed period of 24 months at the interest of 19 percent per annum.
“That the loan granted to the respondents has crystalized to the sum of seven hundred and eighty-four million, three hundred and forty thousand, five hundred and twenty-eight naira, three kobo (N784, 340, 428.03) as at 2014 from the sum of N333,000,000 (Three hundred and thirty-three million naira) granted to the 1st defendant in 2008 and guaranteed by the 2nd defendant as contained in the letter of Aug. 15, 2014 which represents the interest and the principal sum as at Aug. 15, 2014, and same has remained unpaid till date.”
Justice Ekwo then adjourned the matter until Nov. 2 for mention.