First Bank of Nigeria Limited has denied has abusing court process in its legal battle with General Hydrocarbons Limited (GHL).

In a statement released, the bank described media reports on  the abuse of  court processes as failed and misleading stating that had fulfilled its obligations under the loan agreements.

Explaining what transpired, the bank said: “There is a subsisting commercial transaction between FirstBank as lender, and GHL as borrower, where FirstBank extended several credit facilities to GHL for the development of some Oil Mining Lease assets.

“These facilities are backed by very robust loan agreements executed by the parties in which the obligations of the parties are clearly defined and the security arrangement clearly spelt out.

“While FirstBank has diligently performed its obligations under the loan agreements, at the root of the present dispute is FirstBank’s demand for good governance and transparency in the transaction, which GHL rejected.

“Upon FirstBank’s realization of breaches on the part of GHL including diversion of proceeds, FirstBank requested that an independent operator mutually acceptable to both parties be appointed in line with the terms of the agreement, to operate the financed asset in a transparent manner that will bring greater visibility to the project, protect the interest of, and bring value to all stakeholders.

“Not only did GHL roundly reject this reasonable and fair request, rather GHL insisted that FirstBank avails it with more funding. GHL refused to execute the terms of offer stipulated by the Bank for the availment of additional funding but rather proceeded to commence needless Arbitral proceedings.”

The statement further alleged that breaches by GHL, including the diversion of proceeds, prompted First Bank to demand the appointment of an independent operator to manage the financed assets transparently. This request, the bank said, was in line with the terms of the agreement.

When GHL refused to comply, First Bank initiated a court case to protect its interests. The bank also accused GHL of pursuing “unnecessary arbitral proceedings” in response.

First Bank maintains that its decision to take legal action was necessary to safeguard its assets, recover diverted proceeds, and ensure that similar breaches do not occur in the future.

The bank assures its numerous customers, stakeholders and the general public that it remains solid, calm, steadfast and unflinching in its resolve to continue to provide first-class services to its teeming customers within and outside the country.