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Honeywell Flour Not in Financial Distress—Board

By Aduragbemi Omiyale

The board of Honeywell Flour Mills has said the company is not in any way in financial distress and that it has not defaulted in its loan repayment plan with First Bank of Nigeria Limited.

The Chairman of Honeywell Flour, Mr Oba Otudeko, used to be the Chairman of FBN Holdings Plc, the parent company of First Bank.

He was removed from the position by the Central Bank of Nigeria (CBN) last week after the board of First Bank removed Mr Adesola Adeduntan as the Managing Director of the lender without regulatory approval.

The company, according to reports, was asked to pay its loan obligations to First Bank within 48 hours.

But Honeywell Flour, in a statement signed by its secretary, Ms Yewande Giwa, said it has always fulfilled the terms of the loans it obtained from First Bank in line with industry standards.

“In line with the rules of the Nigerian Exchange (NGX) Limited, Honeywell Flour Mills would like to inform the NGX and the general public that Honeywell Flour is a thriving legal entity that is able to, and does in the normal course of its business, take loans and other credit facilities from various financial institutions.

“With reference to the credit facility with First Bank of Nigeria; over many decades, the company has had a long-standing, mutually beneficial credit relationship and continues to fulfil all its obligations to the bank, and all its facilities are fully performing.

“Honeywell Flour has adequate security to cover its loan exposure and has not defaulted or shown signs of distress.

“The terms of the loan with FBN have been fulfilled in line with industry standards and in accordance with agreed terms throughout its course and the company expects to continue to do so.

“We remain committed to complying with regulations governing our industry and our obligations to First Bank and our various financial counterparts,” the statement said.

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