Fidelity Bank finally clarifies bankruptcy rumours amid $3 million debt

• Fidelity Bank has denied media reports claiming it faces bankruptcy owed to a Supreme Court ruling related to a $3 cardinal bequest indebtedness
• The quality involves a longstanding ineligible lawsuit implicit a mortgaged spot linked to G. Cappa Plc and Sagecom Concepts Limited
• The CBN has reassured the public, depositors and stakeholders that the Nigerian banking assemblage remains resilient, harmless and sound

Legit.ng writer Victor Enengedi has implicit a decade's acquisition covering Energy, MSMEs, Technology, Banking and the Economy.

Fidelity Bank Plc has firmly denied caller media claims that it is connected the brink of bankruptcy owed to a Supreme Court ruling related to an aged $3 cardinal recognition installation primitively granted by the now-defunct FSB International Bank successful 2002.

The slope explained that this contented is portion of a longstanding ineligible quality inherited pursuing its acquisition of FSB and that it is presently pursuing judicial guidance to clarify the close calculation of the judgement amount.

Fidelity Bank denies bankruptcy rumours amid $3 cardinal bequest indebtedness dispute
Source: UGC

In a connection signed by Meksley Nwagboh, Divisional Head of Brand & Communications, Fidelity Bank emphasised its coagulated fiscal standing, condemning the reports arsenic false, harmful, and contrary to an existing tribunal order.

The statement, titled “Fidelity Bank Clarifies Position connected Court Judgment Inherited from Defunct FSB International Bank,” further elaborate that the judgement resulted from a past transaction betwixt the defunct FSB International Bank and Sagecom Concepts Limited.

Background to tribunal judgment

Fidelity Bank explained that successful 2002, the now-defunct FSB International Bank granted a $3 cardinal recognition installation to G. Cappa Plc, secured by a owe connected a spot successful Ikoyi. When G. Cappa defaulted connected repayment, it filed a suit to halt FSB from selling the mortgaged property.

In 2011, the Federal High Court ruled that the slope had the close to merchantability the leased involvement successful the spot to Sagecom Concepts Limited but did not assistance vacant possession, leaving G. Cappa successful possession and collecting rents.

Sagecom subsequently sued some the slope and G. Cappa successful the Lagos State High Court for damages and possession.

In 2018, the tribunal ruled successful favour of Sagecom, a judgement aboriginal challenged astatine the Supreme Court. Fidelity Bank maintains that G. Cappa’s continued possession caused losses to Sagecom.

After exhausting appeals, the slope is consenting to settee the indebtedness but highlighted ambiguities successful the judgment, making the nonstop fiscal liability unclear. Based connected a 2005 speech rate, Fidelity estimates the indebtedness astatine astir N14 billion.

However, a caller Supreme Court ruling mandates converting overseas currency judgement debts to Naira astatine the proceedings court’s judgement day successful 2018, raising the payable magnitude to astir N30.7 billion.

The slope has present requested the tribunal to clarify and decently compute the payable sum by G. Cappa and itself.

Fidelity Bank is not bankrupt

The slope assured its depositors, customers, investors, and the nationalist that it is financially strong, not bankrupt, and susceptible of gathering its obligations, arsenic reflected successful its publically disposable Q1 2025 fiscal results.

It stated:

"The slope is nether nary bankruptcy and has ever been successful a presumption to discharge its due and lawful obligations and wishes to guarantee its depositors, customers, investors and the wide nationalist that the slope is successful a beardown fiscal presumption arsenic shown successful its Q1 2025 fiscal results which is disposable to the public."

The slope is actively pursuing each measures to place and instrumentality ineligible enactment against those liable for the harmful and malicious work intended to harm its estimation and unsettle stakeholders.

CBN insists Fidelity Bank is stable

The CBN has assured the public, depositors, and stakeholders that the Nigerian banking assemblage is strong, safe, and stable.

The apex slope responded to misleading reports astir a regulated fiscal institution, saying these claims are false.

In a connection by the Acting Director, Corporate Communications, CBN, Mrs. Hakama Sidi Ali, it emphasised that each banks travel strict rules to support customers' funds.

It stated:

"The CBN wishes to categorically reassure the public, depositors, and stakeholders that the Nigerian banking assemblage remains resilient, safe, and sound."

Fidelity Bank denies bankruptcy rumours amid $3 cardinal bequest indebtedness dispute
Source: Getty Images

The CBN besides confirmed it intimately monitors banks with effectual systems to observe risks aboriginal and support the assemblage secure.

Overall, the CBN reassured everyone that determination is nary request to interest astir the information of their money successful Nigerian banks.

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Source: Legit.ng