Vitol faces asset freeze in Nigeria over $242 million dispute
By the AFREEQUE newsroom, based on ThisDay
A Nigerian court has ordered a provisional freeze on assets belonging to Vitol and other companies in a dispute over petroleum product shipments valued at $242 million. United Bank for Africa accuses the companies of releasing shipments intended for it, according to ThisDay.
The Lagos State High Court has ordered the preservation of assets belonging to Vitol SA, a Swiss energy trading company, and four shipping companies in a $242 million dispute with United Bank for Africa (UBA), ThisDay reports. The interim Mareva-type injunction prohibits, among other things, the dissipation of assets and transactions involving funds up to the amount in dispute.
UBA accuses Vitol of releasing shipments of petroleum products consigned to it in the bills of lading. The bank says it financed the operation through a letter of credit, then received the original bills of lading endorsed “to the order of” UBA, which was supposed to allow it to take possession of the shipments on arrival, according to the affidavit submitted to the court.
The bank is also suing the shipowners for alleged conversion, misrepresentation and negligence. Thirty-four financial institutions and public bodies, including the Nigerian Ports Authority and the customs service, have been named in the proceedings, according to ThisDay.
