Facts:

Union Merchant Bank, the Petitioner brought a petition against Steelways for its inability to pay its debt. In July 1997, the petitioner granted to the respondent a Working Capital Facility of N8 Million, (Eight million naira) and the respondent offered to the Union Bank, Oregun Branch, as security for the facility, it’s Warri Assets. The respondent refused to repay the loan which has risen to N18,000,000.00 (Eighteen million naira) being principal and interest as at December, 2000.

The petitioner had by letter made a formal demand for the liquidation of the facility due but the respondent failed to respond to the letter or make any payment. Consequently, the Petitioner alleged that the respondent is unable to pay its lawful debt and should be wound up.