Court gives US company 21 days to pay BUA N572m or forfeit assets

A United States court has mandated an American corporation to remunerate BUA International Limited with £343,750.91 (approximately N572,628,130.56 or N572 million) as per an arbitral decree.

The United States District Court for the District of Idaho issued this directive to Domtec International LLC, an enterprise based in Idaho renowned for its expertise in constructing concrete domes.

As per court documents accessed by PREMIUM TIMES, Domtec must adhere to this order within 21 days from April 1, the issuance date; otherwise, "the court will, upon notification from the claimants, proceed to issue writs of execution and/or garnishment on Domtec's assets."

BUA International is a trading entity responsible for importing iron and steel for BUA Group, the conglomerate overseen by Nigerian industrialist Abdul Samad Rabiu.

A customers The BUA Group has diversified interests spanning cement manufacturing, food processing, ports and terminal services, iron and steel, and real estate.

In April 2023, the court was initially presented with a petition from BUA International and NOM (UK) Limited. NOM (UK) Limited specializes in equipment and material procurement and acts as an agent for BUA International.

The petition sought court confirmation of a foreign arbitral award issued in the British Virgin Islands five months prior and requested the court to issue an enforceable judgment in favour of the two entities against Domtec.

Domtec breached supply agreement with BUA As per court records, the standard terms and conditions outlined in the supply agreement permitted the resolution of disputes through binding arbitration between the petitioners and Domtec.

The contract, pertaining to the design and construction of sugar domes on BUA's properties in Lagos and Port Harcourt, obligated Domtec to fulfil these tasks.

NOM acted as BUA's representative under the supply agreement, with court documents highlighting several disputes arising from the agreement between the involved parties.

Notably, on April 6, 2021, legal counsel representing NOM and BUA alleged Domtec's non-compliance with a clause within the supply agreement.

In addition to instructing Domtec to remit £343,750.91 to the petitioners, the arbitrator also mandated the company to pay them monthly compounded interest on that sum at a rate of two per cent above the Bank of England bank rate, effective from the date of the arbitral award until full payment is rendered.

Furthermore, Domtec is obligated to pay the petitioners $42,560, covering tribunal fees and costs, along with monthly compounded interest on that amount at a rate of two per cent above the US Federal Reserve interest range, starting from the date of the arbitral award until the payment is fulfilled.

The court decreed that should Domtec fail to fulfil its payment obligation within the stipulated 21-day period, it would be compelled to issue the requested writs upon notification from the petitioners.