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Guinness Nigeria refutes claims of indebtedness to Pharma-Deko

17 Feb 2017, 06:05 pm
Financial Nigeria
Guinness Nigeria refutes claims of indebtedness to Pharma-Deko

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- Guinness Nigeria has assured its employees, customers and shareholders that it is capable of meeting its financial and other obligations to its various stakeholders. 

Guinness Nigeria factory, Ikeja, Lagos

Guinness Nigeria has refuted all claims of indebtedness to Pharma-Deko, a pharmaceutical company. Corporate Communication’s Manager of Guinness Nigeria Plc, Sesan Sobowale, said on Friday that the brewing company owes no debt to the pharmaceutical company.

“Guinness Nigeria denies that it is indebted to Pharma Deko Plc in the stated amount or any amount at all and its solicitors have filed a robust defence to Pharma Deko’s claims in court,” Sobowale said.

Pharma-Deko, a pharmaceutical firm, filed a petition at the Federal High Court in Lagos against Guinness Nigeria Plc., demanding the dissolution of the brewing company over a N175 million canning debt.

The plaintiff’s production manager, Olukayode Isola, in a deposition, maintained that Pharma-Deko went into a contractual canning agreement with the defendant. Due to a breach of agreement by the defendant, arbitration proceedings were conducted in accordance with the demands of the contract. Consequently, an award was issued on July 1, 2016.

Guinness Nigeria, in its affidavit, stated that by a notice in February 10, 2010, Pharma-Deko initiated arbitration proceedings against the defendant, declaring a breach of contract and an unlawful termination of a canning agreement dated July 2006.

In response, legal counsel to Guinness Nigeria, Babatunde Fagbohunlu, urged the court to discount the suit in its entirety, challenging the court’s jurisdiction to preside over the case.

“The amount claimed by Pharma-Deko Plc. in the court process is an insignificant amount when compared with the revenue, cash flow and balance sheet of the company and management is very confident of being able to repudiate the claims in court,” Guinness Nigeria’s spokesman said.

He further assured the employees, customers, shareholders and other stakeholders of Guinness Nigeria that the company is capable of meeting its financial and other obligations to its various stakeholders and that it continues to operate as a going concern.

The case has been rescheduled for hearing on March 28, 2017. The petition, marked FHC/L/CP/69/2017, will be presided over by Justice Hadizat Rabiu-Shagari.


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