Facts:

The appellant approached the respondent sometimes in 2014 for a credit facility of N120,000,000.00 which was granted for a period of 365 days at an interest rate of 21% per annum and a standby letter of credit to the tune of $5,000,000.00 USD. Subsequently, additional facilities were advanced to the Appellant and its total outstanding indebtedness to the Respondent as at 31st January, 2016 stood at N838,337,562.69. The tenor of the restructured facilities was 180 days to expire on 30th April, 2016. There were collaterals granted by the Appellant to the Respondent in form of landed properties and floating debenture on the stocks of Omatek Computers Ltd.

The respondent sent several demand letters to the appellant before the expiration of the loan. The letters demanded full payment of the outstanding loan, but the appellant failed to liquidate its indebtedness. Aggrieved, the respondent filed a Petition for winding up of the appellant to which a Preliminary Objection was filed and argued. The learned trial judge dismissed the objection and held that the Petition for winding up is competent.

Dissatisfied with the ruling of the trial court, the appellant appealed to the Court of Appeal.