Innoson Vehicles Manufacturing Company Ltd has filed a lawsuit against the Imo State Government, led by Governor Hope Uzodinma, over a debt of N2,547,666,435.00 (approximately $6.3 million).
The debt represents the purchase price of various IVM vehicles and parts supplied to the state government.
The company supplied the vehicles to the Imo State Government based on an understanding that payment would be made after delivery.
Despite this agreement, the government has failed to pay or service the debt, prompting Innoson to seek legal action.
The lawsuit, filed at the High Court of Anambra State, Nnewi Division, claims N2.5 billion with a 10% interest rate on the entirety of the sum claimed.
Innoson’s Corporate Communications Head, Cornel Osigwe, stated that the company has been attempting to recover the debt from the government without success, leaving no choice but to resort to litigation.
The debt has significantly affected Innoson’s financial situation, making it challenging for the company to fulfill its loan repayment obligations to banks.
The value of the debt has also depreciated by over 40% due to delayed payment.
Innoson is determined to recover the debt, and the company has begun the process of collecting its debts from the Imo State Government.
The lawsuit aims to secure the payment of the debt with accrued interest.
The case is currently ongoing at the High Court of Anambra State, Nnewi Division. Innoson is seeking justice and a prompt resolution to the matter, hoping to recover the substantial debt owed to them by the Imo State Government.