N175m ‘debt’ causes row between Guinness, PharmaDeko

Guinness Nigeria Plc in Friday says it has responded to a court process at the instance of Pharma Deko Plc which alleged that the company was contractually indebted to Pharma Deko Plc in the sum of N175.7 million.
The Corporate Communications Manager, Guinness Nigeria Plc, Mr Sesan Sobowale, said in a statement in Lagos that the amount represented an arbitral award made against the company and in favour of Pharma Deko Plc.
It said that the award suggested that Guinness Nigeria was unable to pay this debt.
“Guinness Nigeria denies that it is indebted to Pharma Deko Plc in the stated amount or any amount at all and its solicitors have filed a robust defence to Pharma Deko’s claims in court.
“The amount claimed by Pharma Deko Plc in the court process is an insignificant amount when compared with the revenue, cash flow and balance sheet of the company and management is very confident of being able to repudiate the claims in court.
“The management of Guinness Nigeria wishes to assure its employees, customers, shareholders and other stakeholders that it is capable of meeting its financial and other obligations to its various stakeholders and that it continues to operate as a going concern,’’ the statement said.