The Nation Newspaper

Tag: AMCON

  • AERO contractors suspends scheduled services

    AERO contractors suspends scheduled services

    Aero Contractors Airline on Wednesday announced that it would suspend its scheduled services from Thursday September 1, 2016.

    This is contained in a statement from the management of the airline in which it stated that the development was part of the strategic business realignment to reposition the airline and return it to the part of profitability.

    This business decision, which is a result of the current economic situation in the country, has forced some other airlines to suspend operation or out rightly pull out of Nigeria.

    In the case of Aero, the airline said the airline had faced grave challenges in the past six months which impacted its business and by extension the scheduled services operations.

    According to the management, these factors are both internal and external environmental factors that have made it difficult for the foremost airline to continue its scheduled services.

    It said during the period in review, Aero, which was hitherto revered for its safety, timeliness among other virtues witnessed epileptic operations and services to the external public that are caused by non-alignment of fundamental issue of the business, which in some cases have been frustrating and embarrassing to all parties including staff, customers and indeed all stakeholders.

    As part of its resolve to ensure the airline survived unlike most other carriers that experienced short life span in the country, the Asset Management Corporation of Nigeria (AMCON) had appointed Mr. Adeniyi Adegbomire SAN as Receiver Manager in February 6, 2016, with the aim of turning the airline around.

    Since AMCON’s intervention in Aero Contractors in 2011, it has provided support for the airline to meet working capital requirements and fleet expansion.

    These were to ensure the airline remains a going concern providing services to various clients and the general public.

    Unfortunately, the operating environment within and outside the airline have hindered any possible progress especially in the last six months when the Naira depreciated against the dollar thus making it impossible for the airline to achieve its operational targets.

    With these realities coupled with protracted engagements with all relevant stakeholders, the Management of Aero has strenuously reviewed and assessed options and opportunities on ensuring viability, safety and sustainability of operations during the period with a lot of sacrifices.

    “The impact of the external environment has been very harsh on our operational performance, hence management decision to suspend scheduled services operations indefinitely effective September 1, 2016 pending when the external opportunities and a robust sustainable and viable plan is in place for Aero Contractors to recommence its scheduled services.

    “The implication of the suspension of scheduled services operations extends to all staffs directly and indirectly involved in providing services as they are effectively to proceed on indefinite leave of absence during the period of non-services,” the statement stated.

    It added that “We are aware of the impact this will have on our staff and our highly esteemed customers, hence we have initiated moves to ensure that we are able to return back to operations within the shortest possible time, offering reliable, safe and secure operations, which the airline is known for.”

  • ‘AMCON not influenced by the Presidency’

    ‘AMCON not influenced by the Presidency’

    The Asset Management Corporation of Nigeria (AMCON) yesterday dismissed reports that its decision making process was being influenced by the Presidency.

    In a statement, its Head, Corporate Communications, Jude Nwauzor, said the letter, which the report quoted, was a routine correspondence between the office of Chief of Staff to the President and relevant Ministries, Departments and Agencies (MDAs) of government including AMCON to seek clarifications and enable briefings to Mr. President on issues considered as having strategic national importance.

    “There is nothing in the contents of all our correspondences to suggest an influence on AMCON in its business decisions or translate to prospecting business on behalf of any individual, group or organisation as the earlier correspondence on the subject matter clearly required AMCON to exercise due care in the overall interest of the Federal Republic of Nigeria,” he said.

  • AMCON, debt recovery and national interest

    Debt recovery is as daunting atask as anything. Ask anyone with banking experience, he/she will tell you how staff in debt recovery departments are loathed by bank debtors. This is what we are witnessing today: the loathing of Asset Management Corporation of Nigeria (AMCON) by some recalcitrant debtors in the wake of its heightened activities in debt recovery.

    It is tempting in Nigeria to side with a debtor narrating his ordeal at the hands of debt collectors because of the picture such encounter evokes in our minds due to the experience we all share of the bad reputation rent collectors acquired in our communities due to the manner they employed to recover their debt including subjective use of law enforcement agents. It is even more tempting to believe when such narratives are told in our news media with a measure of sophistry. But reading between the lines will show a strenuous effort to stand truth on its head. But the reality isover the years, there has been developed a body of laws to ensure fair dealings in debt collection in Nigeria and globally. So, that portrayal of the debt collector as reprehensible villain out to wreck lives of a struggling debtor— either as an individual or a business concern—belongs to the past or in the warped imagination of the portrayer.

    Therefore, before a statutory body in the league of Asset Management Corporation of Nigeria (AMCON), established and operating with the purview of law and under a regime committed to laid-down rules, is seen in open dispute with a debtor, all amicable options must have been exhausted. This aside, if truth must be told, no company or individual is forced to borrow money in the first place. Ultimately, if companies owe a debt, it’s because they chose to borrow money. Their lenders made that loan, or offered the credit line, contingent upon a documented pledge to pay it back. This means creditors do have a right to their money, and a debt collector is simply trying to reclaim what is legally and ethically owed by the debtor.

    I once argued that the world economy is supported by debt. This means that we are operating a debt-dependent economy. In essence, therefore, debt in itself is not always a bad thing. The problem of debt arises when there is default. So the question is how do we avoid defaults, and if they eventually happen, how do we manage the crisis that follows? There is no one-size-fits-all answer to these questions. Every nation studies its economic peculiarities and adopts the best approach that will mitigate the potential for a catastrophe.

    We all can recall that Nigeria has had its own fair share of the impact of the 2008 global financial meltdown on its banking sector. And we adopted some innovative measures to prevent systemic collapse of our banking system. Three prominent ones stand out – bailout, bridge banking and, perhaps the most significant of all, the establishment of Assets Management Corporation of Nigeria (AMCON) in 2010.

    Lest we forget, AMCONwas created to be a key stabilizing and re-vitalizing tool to revive the financial system. It went ahead to efficiently resolve the non-performing loans (NPL) assets of the banks in the Nigerian economy. Its objective include: assist eligible financial institutions to efficiently dispose of eligible bank assets; efficiently manage and dispose of eligible bank assets acquired by it; and obtain the best achievable financial returns on eligible bank assets or other assets acquired by it.

    So far AMCON has acquired about 13,774 Non-Performing Loans (NPLs) worth N3.6 trillion from 22 commercial banks in Nigeria and provided financial accommodation of N2.2billion, protected N4.7trillion of depositors’ funds and interbank takings as well as saved approximately 14,000 jobs. No one can deny the fact that, through AMCON’s intervention, the Federal Government successfully managed our debt crisies and saved our banking system from imminent systemic collapse. But this achievement will not be complete until and unless it recovers those bad debts, which it uses taxpayers’ money to purchase.

    Lest we also forget, the debtors AMCON is dealing with now have passed through all the three stages of a normal debt recovery process.  They have failed to settle their debts with their initial creditor’s internal collectors (bank loan recovery teams) referred to as first-party agency, which is the first stage in the process. The second stage is when a third party is introduced to play the role of debt collector. The third stage is for the original creditor to write off the debt and sell it, which is where AMCON came in. AMCON has acquired the Non-Performing Loans of the banks using taxpayers’ money; so it is in the national interest that it recovers these loans from the debtors and to do so in order to turn a profit on its purchase.To do otherwise is to short-change toiling Nigerian taxpayers.

    To help it in this recovery task, AMCON has recently inducted successful firms that qualified as its Asset Management Partners (AMPs). The AMPs are consortiums with specialist skills required to ensure recovery and debt resolution from banking, legal, valuation and accounting backgrounds. The move is AMCON’s strategy to resolve over 6,000 accounts with loan balances of N100million and below.

    I believe these AMPs are familiar with all the provisions of the Nigerian laws and with global best practices that advocate for fair treatment of debtors. Perhaps they are aware or even belong to professional associations such as ACA International, the world’s largest non-profit trade group representing collection agencies, creditors, debt buyers, collection attorneys and other industry service providers.

    The ACA requires its members to abide by all laws and regulations, as well as its own codes of ethics and operations. For example, the ACA requires its members to “treat consumers with consideration and respect” and “communicate with consumers with honesty and integrity.” It also prohibits collectors from engaging in “dishonorable, unethical or unprofessional conduct likely to deceive, defraud, or harm a consumer.”

    Indeed, debtors are in safe hands with the current Managing Director/CEO of AMCON Ahmed Lawan Kuru. His vast experience as a risk management expert is widely acknowledged. He knew his onions well, having played at the top echelon of the defunct Bank PHB as executive director overseeing critical areas like Risk Management, Compliance, Commercial Banking, Northern Operations, Public Sector, Multilateral Agencies and the West Coast, East and Central Africa expansion programme of the bank. Before assuming his current position of MD/CEO at AMCON, Ahmed was the MD/CEO of Enterprise Bank Limited. He was also Executive Vice Chairman, Emeritus Capital Limited, a financial service firm with speciality in international business development focusing in sub-Saharan Africa.

    Surely, he is the type of chief executive who knows that loans are the engine of progress of modern economy; so he will never see debtors as enemies as insinuated in some quarters. On the contrary, he is committed to supporting businesses with a view to enhancing their productivity. And, more than that, he wants tohelp them transform their NPLs to RPLs (Re-performing loans). Doing this, Ahmed believes, will provide liquidity to the banks, which will help them meet their own obligations as well. So he knows how to balance his act between giving a breather to debtors to meet their obligations and the need for AMCON to realise its own mandate.

    So what we are seeing today in heightened AMCON activities is nothing short of adoption of an aggressive recovery strategy that has led to increased repayment from hitherto recalcitrant obligors. As said earlier, AMCON is simply trying to reclaim what is legally and ethically owed by the debtor. Period. There is no room for any sentiments here. It is business, pure and simple.

     

    • Hassan is a business and financial analyst.
  • AMCON recovers N644b from debtors —CEO

    AMCON recovers N644b from debtors —CEO

    The Asset Management Corporation of Nigeria (AMCON) yesterday said that the corporation has so far recovered N644 billion from debtors.

    Speaking during a media briefing in Lagos, the AMCON Chief Executive Officer, Ahmed Kuru, said the corporation would continue to engage debtors to pay up their debts.

    The AMCON boss noted that 80 per cent of the bad loans it acquired from banks were beyond redemption. He said: “Financial institutions have primary responsibilities to give out loans, and more than 65 per cent of banks’ incomes are from interest and loans. All these facilities they have transferred to AMCON, 80 per cent of them are already inside the coffin. The only things that supports them are the supporting assets.”

    Kuru said that AMCON was not set up to manage any business, adding that it does not have the capacity to do so. “We looked at those businesses with us that are not dead, but are in intensive care system. More than 80 per cent of the firms we acquired are in the caskets. We are more of a resolution company, with the power to sell the assets of the companies to recover our money. Some of them we injected funds into, but some of them have passed the stage of redemption,” he said.

    He said that AMCON’s intervention in the country actually prevented the collapse of so many businesses, adding that the corporation is going about the mandate for which it was created by the federal government in 2010 to manage the huge Non Performing Loans (NPLs) in the banking sector. He said AMCON had not in any way abdicated that assignment to ‘run businesses’ as perceived by some people.

    Kuru explained that AMCON does not have the power to seal businesses, unless it gets the order from courts, adding that some of the properties in the possession of AMCON are not easily sold because of cash crunch in the economy.  ”We want debtors to come and talk to us on how they want to pay. We do not gain anything by embarrassing anybody,” he said.

    Kuru added that AMCON had never and would not run any business, but as facilitators, “we encourage competent professionals to manage businesses”.

    Speaking on the takeover of Aero Contractors, he said the company employs over 1, 600 staff with only four aircrafts in operation. He said AMCON would do everything within its power to ensure that Aero Contractors survives because it is in the national interest.

    On the continued posting of losses by the corporation, he said: “AMCON cannot make profits. It is not possible for AMCON to declare profits. We received about N160 billion annually from the Sinking Funds. The main objective of AMCON is to ensure it discharges its obligations at the end of its term.”

    The loans acquired by the corporation from the banks were re-valued in line with the International Financial Reporting Standards (IFRS) at the time of acquisition, he disclosed.

  • We are not out to kill businesses — AMCON

    We are not out to kill businesses — AMCON

    The Asset Management Corporation of Nigeria (AMCON) on Friday restated its commitment to support the country’s economy by helping businesses to grow.

    Mr Ahmed Kuru, Managing Director, AMCON made the assertion at a media parley in Lagos.

    Kuru recalled that AMCON was set up during the 2008/2009 global recession to assist businesses in the country cushion the shocks from the recession; a feat, he said, was successful.

    “The global recession of 2008/2009 informed the setting up of AMCON.

    “AMCON has achieved the objective because Nigeria have come out of that recession,’’ Kuru said.

    Kuru noted that it was important to explain to the media the objective of AMCON to inform the business community of its critical role in supporting the growth of the economy.

    According to him, some organisations erroneously believe that AMCON was out to force them out of business, thus maligning it in the media.

    Kuru said the task of loan recovery from ailing businesses was huge, adding that it was a burden it was prepared to bear to salvage the economy and support businesses to remain afloat.

    “Recovery is a very tedious task.

    “Reluctance on the part of debtors is inhibiting debt recovery,” Kuru said.

    The AMCON boss acknowledged the key role the judiciary was playing in the adjudication of cases relating to debt recovery.

    He said that the corporation considered going to the court to recover loans as the last resorts.

    He disclosed that the corporation recovered N644 billion in 2015, while strengthening the companies it bought into with N324 billion.

    He explained that the situation was so because many of the companies were under the weather while some had gone beyond redemption.

    Kuru said that the challenges in the global and local economy was stifling its efforts at debt recovery as shown in the depreciation of some stocks exchanged for money and the volatility in the forex market.

    Consequently, Kuru said that the corporation had to outsource some work to some asset management partners.

    He mentioned that outsourcing would help to manage defaulting companies, thereby creating employment opportunities.

    To achieve this, Kuru added that AMCON had created a real asset investment programme, adding that it would sell forfeited assets when the economy was favourable.

  • AMCON to lease seized property to bridge funding gap

    AMCON to lease seized property to bridge funding gap

    The Asset Management Corporation of Nigeria (AMCON) may introduce the “real-estate investment scheme” by the end of the year to raise money to meet its bond repayments, its Chief Executive Officer Ahmed Kuru has said.

    Kuru told Bloomberg that the agency plans to sell the properties when the economy improves and the assets can attract fair value, he stated.

    The agency was set up six years ago to take on bad debts and rescue the nation’s banking industry from collapse.  Leasing out properties seized from companies that are failing to repay loans will enable it address cash crunch affecting its operation.

    The agency is confiscating more assets than it is receiving from its recovery efforts as businesses battle to sell products and generate cash, Kuru said. Companies that owe AMCON are struggling to meet their debts as Athe nation’s economy heads for a recession because of a slump in crude prices and a 15-month currency peg to the dollar that crippled foreign exchange (forex) supplies.

    AMCON has no plans for another rescue package for banks and is focused on how it will repay N5.2 trillion ($16.5 billion) of outstanding bonds over the next nine years, he said. The agency purchased about 14,000 non-performing loans at a cost of N3.9 trillion in a government-led bailout of 10 companies following the 2009 banking crisis.

    A levy that sees banks paying 0.5 per cent of their assets annually, generates as much as N190 billion for AMCON and is helping the agency fill funding gaps, Kuru said. The shortfall widens as the downturn in the economy causes the price of assets to fall below their book value, making sales difficult, Kuru said.

    “We are in the second phase, which is redemption of our debts, not bailing out banks. We are not in the perpetual business of bailing out banks,’’ Kuru said.

    Nigerian regulators last month replaced the management and board of Skye Bank Plc and provided the nation’s 10th-largest lender with a loan to bolster capital levels that had dropped below requirements. There are “a few” lenders that are probably not meeting prudential ratios in terms of liquidity, or bad loans or capital, Tokunbo Martins, the Central Bank of Nigeria’s director of banking supervision, said last month.

    The sale of Keystone Bank Limited., the biggest of three banks nationalised after the 2009 banking crisis, is in the “final stage” and it would probably be sold this quarter, Kuru said. Sterling Bank Plc said last month it withdrew a bid to buy the lender, which has assets of 318 billion naira and two international units, over price negotiations.

    “Our activity here is directly linked to the economy. The combination of the economy picking up for the banks and also for the obligors’’ will help AMCON meet its objectives and wind down in 2023 as planned, he said.

    The Nigerian Stock Exchange Banking Index, which measures among the country’s 10 biggest lenders, fell 0.1 percent on Tuesday to pare gains this year to eight percent. The naira has weakened 37 percent against the dollar since it started trading freely on June 20.

  • AMCON: In whose interest?

    AMCON: In whose interest?

    The deteriorating macroeconomic environment as well as some earnings-constraining policies from both the monetary and fiscal authorities has seen a lot of businesses in the country gasping for breath. From banking to oil and gas, down to manufacturing, a lot of firms in have been struggling to record decent profit.

    Clearly, the prolonged slump in the price of crude oil as well as the incessant attacks on oil installations have continued to impact negatively on the economy, with attendant spillage on firms in the country. In fact, going by the present situation, the federal government has hinted that implementing the 2016 budget, a very important fiscal policy document, whose execution a lot of people had thought would help reflate the economy, is now a mirage.

    These, coupled with the foreign exchange crisis, which has seen a lot of volatility in the naira, as well as a looming recession, are all source of concerns.

    Nevertheless, despite the weakening macroeconomic outlook, the Asset Management Corporation of Nigeria (AMCON), a key government agency that was created to be a key stabilising and re-vitalising tool in the economy, has continued to parade itself as an enemy of businesses with overall negative bearing on the economy already reeling and dire straits. The government agency that was set up to efficiently resolve the non-performing loans (NPLs), appears to be working in the opposite as its activities have continue to injure businesses.

    AMCON was set up primarily to address the financial crisis of 2008/2009, with specific respect to what the Nigerian banking system was going through. AMCON was set up to provide liquidity by purchasing the NPLs of these commercial banks. By doing that, it freed liquidity so that they could lend to the real sector. At that time the NPL ratio was as high as 60 per cent and the industry average in the prudential guidelines stated that it should be around five per cent.

    So, AMCON was set up to free the liquidity and reduce the NPLs to five per cent. Secondly, AMCON was also encouraged to provide financial accommodation to some of the financial institutions, including some of the obligors in the industry that were considered strategic. What people try not to understand is the fact that quite a lot of those facilities that were bought from financial institutions were facilities that were bad ab initio. They were facilities that had been restructured severally and some of these banks had already put them in memorandum account. What it means is that they had fully provided for them.

    On Tuesday, August 8, 2015, President Muhammadu Buhari dissolved the executive management team of AMCON and approved the reconstitution of a new team.

    To this end, Ahmed Lawan Kuru was named the Managing Director. Kuru was the Group Managing Director of Enterprise Bank Limited, an institution that was previously owned by AMCON. Kuru had in an interview said when AMCON was set up, quite a number of the facilities it acquired were restructured and in the first couple of years of AMCON establishment, they were able to make some recoveries from those facilities.

    “But five years down the line, with the economic situation that is challenging the global financial system, with the price of crude oil down, obviously a lot of our obligors are having challenges meeting their obligation. Also, we are having challenges regarding the valuation of our assets.

    “We are not able to get the true value of our assets because of the economic situation based on the drop in the price of crude oil. If we say we are going to offload our assets based on market realities, we may not get 60 per cent of the value. So, what we are trying to do is to find a way of restructuring some of these facilities,” he had disclosed.

    But AMCON may be doing the opposite of what he promised on assumption of office.

    In an interview with CNBC Africa, he had also promised that AMCON will not in the process of loan recovery allow any company indebted to AMCON go under – a promise he has failed to keep. AMCON has since employed draconian tactics shutting down businesses here and there. From Aero Contractors Limited, Bi-Courtney Limited and Capital Oil Limited, the list is endless. Last month, AMCON sealed the Abuja premises of Silverbird Galleria belonging to Senator Ben Murray Bruce. The galleria currently houses the Abuja studio of the radio and television stations of the senator as well as his other business interests. Apart from Bruce’s companies, the seven-storey building also houses other business interests such as Shoprite, United Bank for Africa, Standard Chartered Bank, Mango boutique, and Etisalat office among others. The building was sealed by AMCON through the assistance of law enforcement agencies around 8am following a court order secured by AMCON. Conspicuously written on the fence of the building as well as other strategic locations was an enforcement notice by AMCON which says, “Possession taken by court order 26/06/16.”

    The same was done to NICON Group which is owned by Jimoh Ibrahim. In this case, the corporation froze the account of the billionaire. But the ruling which empowered AMCON to take the action against AMCON has since been upturned.

    Also, a recent case at hand is that of MRS Holdings Limited, which AMCON claimed is indebted to it. Contrary to AMCON’s claims, the company has maintained that it is not indebted to AMCON.

    In a statement, the company stated: “MRS challenges in the strongest possible terms the false claim by AMCON that MRS is indebted to AMCON in the sum of N81 Billion or any sum at all. The correct position is that MRS obtained a loan from a consortium of banks in Nigeria for a viable project. AMCON took over the loans. However, it became clear to AMCON that MRS was paying down on the loan and agreed to restructure the loan on agreed terms of N74 billion. The said debt has since been fully settled. The terms of settlement was entered as Judgment of Court on 29 June 2015, in Suit No FHC/L/CS/1365/2015.

    “MRS is shocked that in spite of having fully settled the debt, AMCON has decided to re-litigate an already concluded matter. MRS Holdings Limited understands AMCON’s statutory function to recover debts but by no stretch can this mean harassment of companies. AMCON has declared a new aggressive debt recovery drive. MRS has no problem with that but this does not give AMCON a licence to embarrass and harass companies. It is not a crime to obtain loans for viable projects. Execution of viable projects leads to job creation and growth of the economy. However, when companies obtain loans for legitimate businesses are being harassed and embarrassed in the name of aggressive debt recovery, it signals danger for economy growth.”

    Beyond the reputational damage AMCON’s approach has inflicted on companies it claims are owning it, is the larger implication on the economy already heading into recession. This is the worry of many who are concerned that the agency is operating in isolation of its environment. According to an investment analyst who prefers not to be named, AMCON should adopt a new approach that takes note of the current economic realities of the country. “I cannot understand the rush to wind down companies in the name of debt recovery when every businesses and governments across the country are facing difficult times. Now if it winds down these businesses what will happen to the workers? Will AMCON employ them? he asked.

     

    • Ibrahim wrote in from Abuja.
  • MRS Holdings denies owing AMCON N81b

    MRS Holdings denies owing AMCON N81b

    MRS Holdings yesterday denied owing  the Asset Management Corporation of Nigeria (AMCON) N81 billion.

    The downstream oil firm said it was not indebted at all to the corporation, insisting that it fully paid a syndicated loan it took from a consortium of local lenders.

    In a statement issued yesterday, the MRS Holdings management said: “Our attention has been drawn to a recent publication by the Asset Management Corporation of Nigeria alleging that MRS Holdings Limited is indebted to it in the sum of N81 billion and that the Corporation has instituted Suit No: FHC/L/CP/923/2016 to wind up the company over the inability of MRS to pay the alleged debt.”

    AMCON on Tuesday claimed that it began a winding-up proceeding against the company, which is owned by top businessman Alhaji Sayyu Dantata, at a Federal High Court, Lagos, after all its entreaties to the company’s management to settle the debt failed.

    But MRS Holdings described the AMCON claims as false. “MRS challenges in the strongest possible terms, the false claim by AMCON that MRS is indebted to AMCON in the sum of N81 billion or any sum at all. The correct position is that MRS obtained a loan from a consortium of banks in Nigeria for a viable project,” the MRS statement said.

    The oil firm admitted that the loan was taken over by AMCON, only for the corporation to discover that was being serviced. The corporation, it added, agreed to restructure the loan on agreed terms of N74 billion.

    “The said debt has since been fully settled. The terms of settlement was entered as Judgment of Court on 29 June 2015 in Suit No FHC/L/CS/1365/2015. MRS is shocked that in spite of having fully settled the debt, AMCON has decided to re-litigate an already concluded matter. MRS Holdings Limited understands AMCON’s statutory function to recover debts but by no stretch can this mean harassment of companies,” it said.

    Continuing, MRS Holdings said: “AMCON has declared a new aggressive debt recovery drive. MRS has no problem with that but this does not give AMCON a licence to embarrass and harass companies. It is not a crime to obtain loans for viable projects. Execution of viable projects leads to job creation and growth of the economy. However, when companies which obtain loans for legitimate businesses are being harassed and embarrassed in the name of aggressive debt recovery, it signals danger for economy growth.”

    Continuing, the downstream oil firm said it had taken notice of AMCON’s frivolous recovery cases against many companies, which were dismissed by the courts.

    “MRS is taking legal advice to clear its good name and bring necessary actions to seek damages for the embarrassment and damage caused the company’s reputation and goodwill by AMCON’s publication and action,” it said.

    The company assured all its customers and business associates that the report will not affect the company and its subsidiaries’ high quality services records, adding that it would seek redress for the damage caused by the publication.

    “MRS further assures the general public that MRS Holdings Limited and its subsidiaries will continue to transact their businesses with the highest ethical standards and in accordance with the extant laws of the country,” it said.

  • MRS Holdings denies owing AMCON

    The management of MRS Holdings Limited has denied claims that it owes the Asset Management Corporation of Nigeria (AMCON) N81 billion amidst ongoing plans to liquidate its operations.

    The MRS Holdings Limited, a downstream oil firm, said it is not indebted to AMCON, insisting it had fully paid a syndicated loan collected from a consortium of local lenders for a viable project.

    In a statement on Tuesday, the MRS Holdings management, said: “Our attention has been drawn to a recent publication by the Asset Management Corporation of Nigeria (AMCON) alleging that MRS Holdings Limited is indebted to it in the sum of N81 billion and that the corporation has instituted suit No: FHC/L/CP/923/2016 to wind up the company over its inability to pay the alleged debt.”

    AMCON had on Tuesday, claimed it began a winding-up proceeding against MRS Holdings Limited, owned top businessman, Alhaji Sayyu Dantata, at a Federal High Court, Lagos, after all its entreaties to the management of the company to settle the debt failed.

    But MRS Holdings described the AMCON claims as false.

    “MRS challenges in the strongest possible terms, the false claim by AMCON that the company is indebted to AMCON in the sum of N81 billion or any sum at all. The correct position is that MRS obtained a loan from a consortium of banks in Nigeria for a viable project,” the company added.

    The oil firm admitted that the said loan was taken over by AMCON, only for the corporation to discover that the loan was being serviced.

    The corporation, it added, agreed to restructure the loan on agreed terms of N74 billion.

     

  • Alleged debt: Court lifts ban on NICON, Global Fleet accounts

    Justice Abdulazeez Anka of the Federal High Court, Lagos Division, on Monday discharged an order granted to Asset Management Corporation of Nigeria (AMCON) to take over some assets of business mogul, Jimoh Ibrahim, over an alleged N50 billion debt.

    Justice Anka set aside the interim ex parte order following an application by AMCON’s lawyer, Yusuf Ali (SAN), that parties have decided to explore an amicable settlement of the dispute.

    A sister court presided over by Justice Saliu Saidu had on June 14, granted AMCON an interim injunction against NICON Investment Limited, Global Fleet Oil and Gas Limited and Chief Jimoh Ibrahim.

    But, NICON Insurance Limited, Nigeria Re-Insurance Hotels Limited, Abuja International Hotels Limited and NICON Hotels Limited, had in a Motion on Notice, filed by their lawyers led by Chief Niyi Akintola (SAN) and Chief Bolaji Ayorinde (SAN), prayed the court to set aside and discharge the ex parte order on the grounds that AMCON deliberately failed to make full disclosure of all material facts before the court.

    At the resumed hearing of the applications to discharge the order on Monday, Ali told the court that since the provision of the Federal High Court rules encourages amicable settlement of disputes, parties have decided to meet and report back to court within two weeks.

    “In the spirit of good faith to show that we are doing this to promote equity and justice, we agree that the ex parte order should be suspended so that parties can explore the issue of settlement. We have an agreement that each of the parties will nominate one chartered accountant each that will carry out forensic audit of the account. Since Union Bank is the principal bank that gave out the loan, the accountants will meet at Union Bank’s headquarters and they are to report back within two weeks,” Ali said.

    Confirming the agreement, Akintola, Ayorinde and Ibrahim, who led a team of lawyers, urged the court to set aside the ex parte order so as to give parties unfettered access to meet and report back to the court.

    Addressing the court, Akintola submitted that parties have agreed to explore amicable settlement of the dispute, adding that the applicants have appointed the firm of Adewale Folowosele & Associates to meet with those that will be nominated by AMCON and Union Bank.