Court grants leave to commence bankruptcy proceedings against billionaire businesswoman

A Federal High Court sitting in Lagos has given leave to creditors to commence bankruptcy proceedings against prominent billionaire businesswoman Mrs. Chioma Ude in relation to an alleged debt of ₦1,700,000,000:00 (One Billion, Seven Hundred Million Naira). The decision was reached on 30 April 2024 after the court heard the argument of the creditor’s counsel, Olisa Agbakoba Legal.

The prayer to commence bankruptcy proceedings was granted by Mr. Justice Allagos, who stated that the creditors had presented prima facie evidence to support their claims against Mrs. Ude.

According to a press statement from Olisa Agbakoba Legal, Bankruptcy proceedings are widely seen as a very aggressive tool to recover debts, and a declaration of bankruptcy by the court would severely limit Mrs. Ude’s ability to engage in business activities in Nigeria and around the world. If declared bankrupt, Mrs. Ude would be required to disclose all her assets and liabilities, and her properties may be sold to settle the outstanding debts.

Mrs. Chioma Ude is a well-known figure in the Nigerian business community, with investments spanning various sectors, including real estate, entertainment etc. The news of the bankruptcy proceedings has sent shockwaves through the business community, with many expressing surprise at the development.

The proceedings in court are set to continue on June 17, 2024, when Mrs. Ude or her legal representatives are expected to present their case. The outcome of these proceedings could have significant implications for Mrs. Ude’s business empire and her reputation in the business world.