Goddy Egene
The management of Resort Savings &
Loans Plc has assured stakeholders that its recapitalisation process is
on course. The mortgage banking firm had executed a $250 million
financing facility with Milost Global of United States.
“Following the discussions, the bank has
executed a $250 million financing facility term sheet and Commitment
Letter with Milost Global Inc. The facility comprises $100 million
equity and $150 million debt,” the bank said.
Before that agreement, Resort Savings
said it had earlier secured the interest of a local investor which the
Central Bank of Nigeria (CBN) was expected to give final approval to in
due course.
Giving updates on the deal with Milost,
the bank, in a notification to the NSE yesterday, said it had executed a
binding agreement with Milost with first draw down of $10 million with
provision for immediate release of $1 million.
“The release of the fund is being
delayed by valuation of the bank’s shares through market forces. The
shares of the bank are presently on technical suspension and we believe
the suspension will be lifted with the provision of constant and
required information,” it said.
The bank disclosed that it has carried out some actions vis-as-vis the recapitalisation.
“Audit of the bank financial statements
for the year 2015, 2016, 2017 by Messrs BBC Professionals; execution of
escrow agent with Milost Global Inc and the escrow agent in Nigeria;
Forwarding of the audited accounts to Central Bank of Nigeria(CBN) for
approval before being transmitted to the regulators, stakeholders,
general public in line with operating guidelines,” it said.
According to the bank, the board and
management had been assured of both local and foreign investors the
readiness to turn the bank around positively.
Resort Savings had last year expressed
its preparedness to play a dominant role in the country’s mortgage
banking sector, having overcome the board and management crisis which it
faced for over two years.
The bank last year appointed a new
management team to steer the organisation. Senator Sunday Fajinmi was
appointed the Board Chairman, while Mr. Olayemi Rabiu was appointed the
managing director/CEO and two executive directors in the persons of Mr.
Kolawole Adesina and Mr. Aliu Oshoke.
“The bank is already normalising her
relationship with various developers with a view to leveraging on them
in creating good mortgages for her teeming customers in excess of
80,000.
“Issues are equally being resolved with
appropriate agencies with a view to bringing the bank back to profitable
operations within the shortest time possible,” the bad had said.
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