Description

The Respondent is the owner of a McDonnell Douglas MD-82 Aircraft whose indebtedness to several banks was acquired by the Asset Management Corporation of Nigeria (AMCON), which consequently took possession of its assets including the aircraft (the subject matter of this suit). Following negotiations, a Settlement Agreement was executed following which AMCON released the Aircraft to the Respondent for the purpose of generating income towards liquidation of the outstanding indebtedness.

Prior to the Settlement Agreement, AMCON had leased the aircraft to the Appellant. The case of the Respondent is that the lease expired in 2020 after which it became the proper lessor. That it entered into a dry lease agreement with the Appellant at USD $500,000 per month in which the Appellant defaulted. That while the suit was pending, parties executed a Memorandum of Understanding (MOUs) in April and July 2021, under which the Appellant undertook to pay outstanding and future rentals. The Respondent claim that the Appellant defaulted in its obligations under the Memoranda of Understanding, and that such breach nullified the agreement.