Tag: AMCON

Jude Nwauzor, Head, Corporate Communications, Assets Management Corporation of Nigeria (AMCON), in this interview with Ibrahim Apekhade Yusuf speaks on the steps and processes which necessitate AMCON’s takeover of debtor companies, among other issues. Excerpts:

UNDER this current AMCON management a number of innovations have been introduced and the tempo of your recovery activities and court orders, which enable you to carry out enforcement on assets and businesses have also increased. Give us the idea of the businesses currently under your hold and the ones pending on AMCON takeover list

As mandated by the Central Bank of Nigeria (CBN), we published the list of AMCON top 100 debtors in January. Aside that, I may not be able to name all the businesses but I can tell you that 400 obligors of AMCON account for more than N4.5 trillion, which is approximately 80 per cent of the total outstanding loan balance of the Corporation’s over twelve thousand accounts with obligors that have become recalcitrant over time despite obvious efforts of the AMCON. Of course, as soon as we conclude the compilation to publish a follow-up to that list, we will do so without hesitation.

But we do not discuss obligor cases that are in court or reveal the plan of which obligor that is next on the line. That is our trade secret. The people that are indebted to AMCON know themselves and very soon the public will know all of them. Every enforcement or takeovers were done within the ambit of the law. Once we obtain a court order on any business, asset or individual, we enforce immediately. On the businesses that are in our books, we are in receivership of about 50 businesses and more than 180 businesses under enforcement including the ones you saw in the media recently. But in all the businesses that we take over, my Managing Director/Chief Executive Officer, Mr. Ahmed Kuru, has continually laid emphasis on business continuity. He is passionate about helping businesses survive because that is one aspect of the mandate of AMCON, which is to help stabilise the Nigerian economy.

There are claims out there that when you take over businesses it is like you render those businesses dead and clear their carcasses like undertakers

That is a misconception, because my MD has repeatedly stated that AMCON is not interested in killing or closing any business in Nigeria. This decision aligns with the goals of the present administration of President Muhammadu Buhari to create jobs; so you cannot create jobs by closing businesses. That was also why the Minister of Labour insisted that the banks must stop sacking. I think he made that comment in good faith as a concerned Nigerian. You cannot claim that government wants to create jobs while industries and businesses are closing down. If AMCON kills businesses, then it means we are not in sync with government’s aspirations and commitment. So the idea my MD keeps emphasising is that we want businesses to grow, which is why we do not shut them down.

It is wrong for people to perceive AMCON as an undertaker because we are not. We also want to lend ourselves to industrial growth so that jobs can be created and people will have employment and the economy will run. Nobody is happy with what the Nigerian economy has become and we cannot be appealing to foreign investors to come in when we are shutting down and killing local businesses in Nigeria. It just doesn’t make sense. And that is why in most of our statements, we emphasise that AMCON is not trying to kill or disrupt businesses, rather we want to make people responsible and responsive to their obligations. And I do not think it is too much to ask. In fact, if people had respected their obligations, the crisis that led to the creation of AMCON in 2010 would have been avoided ab initio.

This is also not the only clime where a body like AMCON has been used to stabilise the economy. If you sit down with my MD and ask him, he would tell you that the job of recovery is stressful. It is challenging and exhausting. Look at it, even among friends, people find it easy to borrow money but paying back is always a problem. People run to friends and family members to borrow N20,000 or N50,000 to take care of maybe a hospital bill for instance; when it comes to paying back, you will hear comments like…’is it because of common N20,000 that you are harassing me?’ That is the same issue we are facing with obligors of AMCON. The Corporation was set up as a ‘Bad Bank’ and quite frankly, we do not have ‘friendly’ customers. We have debtors that we are no longer patient with.

Are the companies under AMCON’s receivership showing any promise at all in terms of a rebound?

Let us remember that all the loans on our books are bad debts that are not performing even before they were sold to AMCON. In short, they were loans that were dead on arrival, so they cannot just rebound just because AMCON has taken them over. That is the recovery challenge facing the Corporation, which I mentioned earlier. It was also on that basis that AMCON increased the tempo of its recovery activities using firmer negotiation strategies as well as utilising the special enforcement powers vested by the AMCON Act to compel some of these debtors, especially those that are politically exposed and business heavyweights, to repay their debts.

This whole idea of supporting other economies with the monies borrowed from Nigeria is unfair because our economy needs all the support it can get to stabilise. The truth is that if a businessman borrows to establish poultry with 10, 000 birds, he will be able to make income, service the loan, create employment and contribute to the food basket of the nation. If AMCON sees ahonest businessman that is running poultry for instance, who actually goes into the business successfully and the business collapses after losing his chickens to say bird flu, we will not take him to court, especially if we find out that he has been servicing his debts before tragedy struck. But if you are indebted and cruising around town in Rolls Royce without paying, we will evoke the powers of AMCON and take over your assets. It is simple law of borrowing and paying.

When you take over these businesses what happens to the employees of the companies in receivership; do you undertake fresh recruitments?

No, we do not run businesses, we rely on experts to run the businesses.

Hon. Justice Chuka Austine Obiozor of The Federal High Court Lagos Division has granted an interim injunction against Afrijet Airlines Limited, owned by Chief Vitalis Ibe on the application of Asset Management Corporation of Nigeria (AMCON).

The obligor owes AMCON nearly N10 billion. AMCON purchased the Eligible Bank Assets (EBAs) sometime in 2011 from the defunct FinBank and Bank PHB. The order also affects Ibe’s Continental Aviation Services Limited. AMCON has since appointed Prof. Gbolahan Elias, SAN as Receiver/Manager.

At about 11:00am yesterday, the Receiver/Manager took possession of the assets of Chief Ibe including Afrijet Plaza, the corporate head office of the airlines located on Sheraton-Opebi Link Road Ikeja, Opebi, Lagos; his asset at Plot 22, JimohOdutola Street, off Eric Moore Road, Surulere, Lagos as well as his office at the Airport. The Court order mandated the Receiver/Manager to also take over on behalf of AMCON and any other offices, branches, stores, warehouses, factories of Chief Ibe and his companies located and/or traced for the purpose of satisfying the indebtedness.

Justice  Obiozor, the presiding judge while granting the order on the application of Prof. Gbolahan Elias, SAN counsel to AMCON, restrained Ibe and his companies, directors, agents, servants and/or privies from operating, withdrawing from or otherwise tampering with the funds belonging to and/or deposited in any of his bank accounts under whatever name or guise in any bank or financial institution in Nigeria. Chief Ibe who would not repay the huge debt owed the Corporation has been in protracted negotiations with AMCON.

The Court therefore ordered the Inspector General of Police, Assistant Inspectors General of Police, and the Commissioner of Police in charge of Lagos State, its Deputy and all other Police Officers under them to assist Prof. Gbolahan Elias, SAN, the Receiver/Manager and the Bailiffs of the Federal High Court in the enforcement of the orders of the Court. No incident was recorded during the enforcement exercise.

Afrijet Airlines formally operated from the NAHCO Building on the grounds of Murtala Muhammed International Airport in Ikeja, Lagos. At some point in the history of the airline, it also operated regional cargo operations high profile security flight operations in the Democratic Republic of Congo. The airline later moved to its corporate headquarters in Opebi, Lagos, which was one of the assets AMCON took over yesterday.

Afrijet Airlines still maintains an aviation maintenance shop with its sister company, Elite Aviation.

The Asset Management Corporation of Nigeria (AMCON) yesterday took over the assets of three firmss belonging Silberbird Group – the famiily firm of Senator Ben Murray-Bruce (Bayelsa East).

Affected are Silverbird Galleria Limited, Silverbird Promotions Limited and Silverbird Showtime Limited. They are  located in Lagos, Abuja andPort Harcourt.

The Lagos’ property is located at 133 Ahmadu Bello Way, Victoria Island; Abuja’s property is at Plot No 1161 (Silverbird Galleria), Central Area Cadastral Zone Apo, while Rivers’ is on Abonnema Wharf Road and Abali Park in Port Harcourt.

The takeover followed interim orders granted by Justice Cecilia Olatoregun-Ishola of the Lagos Federal High Court on June 17, which allowed the receiver and manager to take possession of the affected firms.

Agents of AMCON’s Receiver/Manager arrived at the firms in the early hours of yesterday in company of security operatives to take over the properties. Workers were prevented from entering the affected firms’ premises before they were locked up.

According to AMCON, Senator Bruce, using his firms in 2005 and 2007, borrowed various sums of money from the Union Bank of Nigeria Plc and defaulted in his obligations to pay back.

AMCON bought over the loans from the bank and reached agreement with Senator Bruce on repayment. But the lawmaker could not make up the debt with AMCON, prompting the takeover.

Counsel to the Receiver/Manager, Kunle Adegoke, said Senator Bruce’s loan was purchased by AMCON in 2011 after the capital base of Union Bank was “terribly shaky”. He said the lawmaker “persistently failed” to pay the loans.

Adegoke denied that AMCON’s action had political undertone, saying the takeover of Silverbird properties was legal and in line with mortgage laws.

He said: “Aside that the receivership was done pursuant to deeds of legal mortgages duly executed by the three companies and guaranteed by Mr. Ben Murray-Bruce and four of his brothers, there is a court order backing same up.

“It must be borne in mind that innocent depositors’ money is what Mr. Murray-Bruce and his brothers have been living large and feeding fat upon without recourse to the interest of the real labourers who own the money.”

Reacting to the development, Senator Bruce said he was on international transit when he got the news of the takeover. He expressed his resolve to remain composed, saying the development was not unusual for a business that has been in existence for over three decades.

Reacting to the development on Twitter, he said: “In 36 years, Silverbird has grown and like anybody, it will face challenges; tough times don’t last. But we, as tough people, outlast them.

“I have been on an international flight and have only just landed. The situation is being resolved and things will be back to normal.”

A Federal High Court, Lagos Judicial division has given an order setting aside the appointment of Chief J. Akingbola Akinola, as the Receiver Manager of Avian Specialties Nigeria Limited on the ground that the said appointment is in disregard and defiance of the ex-Parte order of the court made earlier on January 29, 2016.

The court further gave an order instructing Chief Akinola, described as the Receiver Manager appointed by the Asset Management Corporation of Nigeria (AMCON), to vacate the premises of Avian Specialties Limited and its farm that he took possession of on March 23, 2016 in disregard of the Interim Order of Injunction made by the court restraining AMCON from appointing itself or any other person as receiver manager of the company.

The court further held and ordered that Avian Specialties can reverse all steps taken by Chief Akinola as Receiver Manager appointed by AMCON in relation to the management and affairs of the company.

The court in its ruling held that, “pursuant to the disciplinary jurisdiction of the court, an order of the honourable court setting aside the appointment of Chief J. Akingbola Akinola as Receiver Manager of Avian Specialties Nigeria Limited which appointment was registered with the Corporate Affairs Commission on 15th February, 2016 in disregard or defiance of the ex-parte order of the court on 29/01/16 restraining the Assets Management Corporation  of Nigeria from appointing itself or any other person as Receiver Manager over the affairs of the company.”

Avian Specialties Nigeria Limited and Mr James Olugbenga Oluwole, had filed an application against Keystone Bank Plc, AMCON and Chief J. Akingbola Akinola, before the court asking for an order setting aside Chief Akinola’s appointment among many such other others.

A Federal High court sitting in Abuja had in a similar application filed by AMCON and Chief Akinola, on May 23, 2016, discharged the Exparted Orders that it earlier granted in favour of AMCON on  and Chief Akinola after hearing arguments from counsel to Avian stating that the Exparte order was obtained through willful concealment.

The Abuja court while resolving the matter in favour of Avian Specialties stated that upon reading the affidavit in Support of Motion sworn to by Evans Jones Osimerha, adult, male and upon hearing him move in terms of the application with Exhibits A-D,  will deliver its ruling and discharged the earlier order.

Avian through its counsel, Osimerha, had argued that the ex-parte orders granted in favour of AMCON and Chief Akinola on 15th march, 2016 were obtained through willful concealment or suppression of material facts, in bad faith and out of abuse of the judicial process.