The Nation Newspaper

Tag: AMCON

  • AMCON to levy execution on Ibru’s properties

    The Federal High Court sitting in Lagos has granted leave to the Asset Management Company of Nigeria (AMCON) to levy execution of the properties of Mrs. Cecilia Ibru who was sentenced to six months imprisonment on October 8, 2010.

    Mrs. Ibru was charged and arraigned before the former Chief Judge of the Federal High Court, Hon. Justice Dan Abutu on a 25 count amended charge involving bank fraud and corruption.

    She pleaded guilty to three of the counts and sentenced accordingly, in addition to an order forfeiting her illegally acquired properties to the Federal Government and the assets were to be managed by AMCON.

    Following this judgment, the Federal Government made a Public Notice No. 58 in the Official Gazette No. 94 Volume 98, in which the Judgment Order of Justice Abutu and the schedule of the forfeited properties were gazetted as having being forfeited to AMCON by Mrs. Cecilia Ibru.

    On February 28, 2013, AMCON filed an application, for an order granting leave to AMCON for the issuance of a Writ of Execution to take possession of some of the properties vested in AMCON and listed in the Schedule attached to the subsisting Judgment of Honourable Justice D. Abutu.

    AMCON’s application dated 28th February 2013 was heard and granted on 1st March 2013 by Justice O. J. Okeke and the order was executed on March 6, 2013 and this prompted former staff of NEPA and Michelangelo Properties Limited to file separate post execution of judgment applications seeking an order to set aside the order granted by the court as it relates to some of the properties.

  • Ibru: PHCN officials move to stop FG from taking over property

    Ibru: PHCN officials move to stop FG from taking over property

    Five senior employees of the Power Holding Company of Nigeria (PHCN) on Friday challenged their ejection from the company’s property said to have been forfeited to the Federal Government by former Oceanic Bank Managing Director, Mrs. Cecilia Ibru.

    They urged a Federal High Court, Lagos, presided over by Justice Okechukwu Okeke, to stop the Asset Management Corporation of Nigeria (AMCON) from taking over the property.

    But AMCON said it merely executed a valid order of the court to possess the houses.

    According to the workers, represented by rights activist Mr. Femi Falana (SAN), AMCON came with the court’s sherriff on March 6 and sealed their residential houses.

    “When the premises was sealed, some of the occupants were inside their various flats with their children while some were outside,” Falana said.

    Other parties in the Motion on Notice are the Federal Republic of Nigeria, Dr. Ibru and AMCON, joined as Judgment-Creditor/Respondent.

    The applicants are – Engr. Michael Dada, Engr. Charles Amadi, Mallam Lawan Muhammad, Mrs. Comfort Odili-Iwuafor and Mr. Anthony Abikoye.

    They sought an order setting aside another order made by the court on March 1 granting leave to AMCON to apply for the issuance of a writ of executive (possession) in respect of the property located on 5A, George Street, Ikoyi.

    The applicants prayed for an order setting aside the execution levied on the property based on the March 1 order.

    They asked the court to restrain AMCON and the court’s Deputy Sherriff from taking further steps or levying further execution until all pending suits over the property are determined.

    During the hearing, Falana said PHCN offered the applicants the properties to buy, which they did by paying the Federal Government for them. He exhibited the receipts of payment. He said they subsequently filed suits seeking to stop the government from taking over the houses, but while the suits were pending, the March 1 order was executed.

    Falana told the court that in 2010, when a forfeiture order was made by another judge to relinquish the said property to AMCON, the applicants filed a suit seeking to set aside that forfeiture order.

    He argued that despite AMCON’s knowledge of the pending suit, it still went ahead to obtain an order to seal up the premises.

    “The ownership of the property has not been disputed by the judgment-creditor. We’re the owners of this property,” Falana said.

    But counsel for the respondents, Mr. Chuka Agbu (SAN) urged the court to dismiss the application, saying it was “unmeritorious”.

    In a counter-affidavit, the lawyer said AMCON was not privy to any pending suit over the property, nor is it a party to any ex- parte order purportedly made regarding the property.

     

  • AMCON hires receiver/manager for Fiogret’s assets

    The Asset Management of Nigeria (AMCON) has again bared its fang on one of its debtors – Fiogret Limited. It has appointed a receiver/manager for “the entire undertakings, stocks, goodwill, plant and machinery, moveable and fixed assets,”of Fiogret Limited.

    The corporation said its decision to appoint Kunle Ogunba (SAN) as the receiver of Fiogret assets was in line with a deed of mortgage debenture dated February 1, 2008 registered at the Corporate Affairs Commission (CAC).

    AMCON said the deed of appointment of the receiver dated November 2, 2012 has equally been registered with the CAC.

    It listed some of the company’s properties in possession of the receive/manager to include 43, Norman Williams Street, off Awolowo Road, Ikoyi, Lagos; Plots 230-234 Ikorodu, Owutu-Ikorodu, Lagos; Plot 15 Layi Ajayi Bembe Street, Parkview Estate, Ikoyi, Lagos; Etete Road, off Benin-Sapele Road, Benin City and East West Road, Rumuokwurush Obio/Akpo Local Government Area, Rivers State.

    AMCON, in an advertorial dated March 1, 2013 and signed by Ogunba, urged all debtors to Fiogret to pay directly to the receiver/manager.

    The company’s creditors are also to send proof of claims to Ogunba within 14 days of the publication of the advertorial in newspapers.

    It urged all banks and other financial institutions currently in custody of deposits, cash and other assets of Fiogret to continue to hold them until the receiver/manager issues further instructions “in accordance with the pre-emptive orders of court in suit:

    FHC/L/CS/63/2013 pending within the bosom of the Federal High Court, Lagos division.

    “All holders of such deposits should contact the receiver/manager, stating the balance and where secured facilities are granted, the type of security attached should be disclosed,” AMCON said.

     

     

     

     

     

     

     

     

     

  • ‘Net loans to private sector rises by 3%’

    Net loans to the private sector increased by three per cent, FBN Capital Limited has said.

    The firm in statement entitled: Annual loan growth negligible, made available to The Nation, said the loans  from the banking system (including the private sector contracted by one per cent last month.

    It  said: “The negligible rate of loan growth is surprising on the surface when we recall that GDP growth is marginally over seven per cent on year to year basis.  We could legitimately query both data series but we could also comment on the phenomenon of the “disconnect,” i.e. the continuing robust growth of the economy since the twin bailouts of the banks in 2009 with support from sectors enjoying limited access to credit.”

    The financial advisory firm said the deposit money banks provided more than 65 per cent of total credit to the private sector, noting that the balance consists of obligations to the CBN, notably the bad debts of the banks initially exchanged for bonds issued by the Assets Management Company of Nigeria(AMCON).

    According to the firm, the banks have preferred to take the safe and healthy returns from holding Federal Government’s paper, instead of lending to the private sector.

    “ We are not convinced that the yield compression of 600 basis points on FGN bonds and Treasury Bills will prove a game changer. There are no large sectors where the banks have the credit skills to expand their loan books rapidly,” it added.

  • AMCON warns public over Babalakin’s property

    •Businessman accuses corporation of withdrawing suit

    The Asset Management Corporation of Nigeria (AMCON) yesterday insisted it had taken an order to take possession of two properties linked with businessman-lawyer, Wale Babalakin pursuant to the order made by Justice Chukwujekwu Aneke of the Federal High Court, Lagos in suit no: FHC/L/CS/1501/12.

    The corporation said the properties located on 43A Afribank Street Victoria Island, Lagos and Plot 270 Trans Amadi Layout, Port-Harcourt, Rivers State were pledged as collateral to the loans granted to Roygate Properties Limited – a company in which Babalakin is believed to have interest.

    Babalakin has however, denied the corporation’s claim. He equally alleged in a statement yesterday that AMCON had withdrawn its case relating to the dispute between them, a claim the corporation’s Managing Director, Mustafa Chike-Obi denied last night.

    In an advertorial titled – “Caveat emptor: Recovery of properties and assets,” AMCON warned the general public against dealing with Babalakin and his companies in relation to the affected properties.

    “Property at 43A Afribank Street Victoria Island Lagos, pursuant to a tripartite legal Mortgage registered on 14 October 2010, between Roygate Properties Limited (Borrower), Stabilini Visinoni Limited (Surety/Mortgagor) and Guaranty Trust Bank Plc (The Lender).

    “Property at Plot 270, Trans Amadi Layout, Port Harcourt, Rivers State pursuant to a Tripartite equitable mortgage between Roygate Properties Limited (Borrower), Homan Engineering Company Limited (Surety/Mortgagor) and Guaranty Trust Bank Plc(Mortgagee).

    “The general public is hereby notified not to deal or have further dealings with Roygate Properties Limited, Stabilini Visinoni Limited, Homan Engineering Company Limited and Dr. Bolanle Olawale Babalakin SAN in respect of the properties and assets,” AMCON said.

    But Babalakin’s spokesman, Dipo Kehinde described the alleged sudden withdrawal of a suit by AMCON as “treacherous.”

    Kehinde said: “Consistent with this allegation and immediately after Dr. Babalakin’s statement to the press, AMCON hurriedly withdrew the case that had been instituted by its alleged predecessors-in-title – Guaranty Trust Bank Plc (“GTB”).

    “GTB had stated on oath that it had sold the property in dispute to a third party, R.E.D. Company Limited, prior to the assignment of the alleged debt to AMCON. This purported sale of the property is being contested at the High Court of Lagos State in proceedings, which are still pending. GTB could therefore not have transferred its disputed interest in the property to AMCON. Consequently, AMCON had no interest to enforce in the property.

    “The import of the existence of GTB’s suit is that AMCON, through its agents, knew that the subject-matter of the ex-parte order (No. 43A Churchgate Street) it sought and obtained in the Federal High Court was already an issue before the Lagos High Court and had allegedly been sold by its so-called predecessor-in-title. AMCON’s action at the Federal High Court was therefore fraudulent and amounted to a gross abuse of the process of Court.

    “It is also noteworthy that these facts support the stance of Dr. B. O. Babalakin that the property was never mortgaged to GTB in the first instance. Babalakin’s consistent assertion that AMCON and its alleged predecessor-in-title were engaged in misleading the public over the status of the building now appears to be confirmed.”

    Reaction to Babalakin’s claim that AMCON had withdrawn its suit, Chike-Obi said : “It is not true that the case was withdrawn. We will pursue this matter as vigorously as the law allows us. And we will ensure that the he pays all the money he owes us.”

     

  • Why court is helpless on corruption – Agbakoba

    Why court is helpless on corruption – Agbakoba

    Former President of the Nigerian Bar Association (NBA), Olisa Agbakoba (SAN) has blamed the inadequacy of existing laws for the seeming helplessness of the nation’s criminal justice system.

    He said the system seems to have been overwhelmed by the level of corruption in the country, because existing laws are old and weak.

    Agbakoba argued that the sentence handed to John Yusufu, the Police Pension Fund convict, which many found ridiculous, was because the nation’s criminal laws are old.

    He suggested a comprehensive overhaul of the nation’s laws to enable it cope with today’s reality.

    The former NBA chief spoke with journalists on Monday on the sideline of the Second Federal High Court Judges Forum organised in Lagos by the Asset Management Company of Nigeria (AMCON).

    He praised the initiative behind the forum, which was meant for the judges to closely examine the newly introduced AMCON Practice Direction 2013.

    The forum, he said, was part of effort to further educate the judges on ways to deal with AMCON cases and ensuring that they were speedily dealt with.

    Chief Judge of the Federal High Court, Justice Ibrahim Auta, who unveiled the practice direction at the opening session of the forum, urged judges to treat AMCON and other related cases with dispatch.

    He said priority should be given to cases filed by AMCON as is being done to cases relating to fundamental rights, money laundering, rape and kidnapping because “they affect the life blood of the nation.”

    Auta, however, noted that the fact that AMCON was bankrolling the forum did not mean the judges should close their eyes to all that AMCON files.

    He said plan was on to ensure that cases filed by AMCON were sent to judges in other jurisdictions outside Abuja and Lagos, where the cases are currently concentrated.

     

  • AMCON takes possession of Babalakin’s property

    AMCON takes possession of Babalakin’s property

    •Over alleged N13.5b debt

    A detachment of armed policemen and bailiffs of the Federal High Court, Lagos on Friday evening, took possession of and sealed off a high rise building on 43A, Afribank Street, Victoria Island, Lagos owned by businessman-lawyer, Wale Babalakin.

    Their action according to a statement from the Asset Management Corporation of Nigeria (AMCON), was in execution of interim orders granted by Justice Chukwujekwu Aneke against Roygate Properties Limited, believed to be owned by Babalakin.

    The orders were sequel to an ex-parte application filed by the AMCON in a suit marked: FHC/L/CS/1501/2012. Copies of the orders made on February 5 were conspicuously pasted on the gates of the VI house.

    Justice Aneke granted AMCON “interim possession of the property at 43A” Afribank Street, pursuant to a tripartite legal mortgage registered on October 14, 2010 between Roygate (the borrower) , Stabilini Visioni Limited (surety/mortgagor) and Guaranty Trust Bank (the lender.)

    The court also granted AMCON similar possession over properties at Plots 270 and 273 Trans Amadi Layout, Port Harcourt, Rivers State.

    The court restrained Roygate, its directors, subsidiaries and sister companies from transferring or dealing with any of its funds in 20 banks listed in the application, or anywhere else up to the N13.5billion allegedly owed by the company.

    Justice Aneke restrained the banks from allowing Roygate “operate any bank accounts” held by it in the banks.

    The court ordered the banks to serve on AMCON lawyers, within seven days of the service of the order on them, “an affidavit disclosing the respondent’s (Roygate’s) balance on accounts held with the said banks jointly and severally as at the date of the order.”

    Justice Aneke also ordered the Nigeria Police Force to assist in the enforcement of the orders, which he held, should subsist pending the determination of the substantive suit.

    The Hon. Justices Aneke set Feb 19 2013 as the return date’

    Just few months ago, similar order was given to AMCON to take possession of some property and assets owned by one of its debtors, Tonique Oil Services Limited.

    The Corporation executed the said orders on Tonique Oil’s premises in Ikoyi and Gbagada, Lagos state with the assistance of law enforcement agents, lawyers and court bailiffs.

    AMCON had previously reiterated its commitment to ensure the resolution of all Non-Performing Loans purchased in accordance with the AMCON Act.

     

  • AMCON acquires equity stake in Starcomms

    AMCON acquires equity stake in Starcomms

    Assets Management Company of Nigeria (AMCON) has acquired a stake in the debt-ridden telecoms company Starcomms.

    As part of the deal with Capcom, the special purpose vehicle through which AMCON will have a share of Starcomms, both Helios Investment Partners, an African-focused private investment firm and AMCON, would acquire equity stakes in Starcomms derived from the Capcom shareholding on completion of the transaction.

    Addressing shareholders in Abuja at a court-ordered meeting on the acquisition, the interim Chief Excutive Officer of Starcomms Mr Olusola Oladokun said the acquisition became necessary because “Starcomms is facing operational and financial challenges on account of the shifting competitive landscape in Nigeria’s telecommunications industry.”

    The recent challenges, he added, “have resulted in the company generating operational losses and functioning with unsustainably high levels of debt and the reduction of weekly cash collections to unsustainable low levels.”

    As a result, the board decided to accept a proposal from Capcom to inject the much-needed capital and assets into Starcomms to facilitate a strategic turnaround and improve the competitive position of the company.

    To facilitate the investment, Starcomms’ shareholders endorsed a Scheme of Arrangement “to reorganise Starcomms’ share capital, subsequent to which the company will undertake the private placement for the subscription of new shares by Capcom.”

    Oladokun explained that Capcom is registered in Mauritius, saying the company was established by MBC, a private trust. “MBC has investment agreements in place with a number of investors, including Oldonyo Laro Estate limited, Helios Investment Partners and AMCON.”

    The commercial understanding that was captured in the investment agreement between Starcomms and Capcom, stipulates that the placing will entail Capcom contributing the investment consideration to Starcomms via the placing in exchange for such number of shares as will result in Capcom owning90.5 per cent of Starcomms’ share capital post-placing, he said.

    Starcomms has 6,966,963,378 shares in issue, thus implementing the placing without reorganising Starcomms’ share capital. The scheme would require that Starcomms issues 62 billion additional ordinary shares to Capcom under the placing.

    However, given the significant cost and time implications of increasing the company’s authorised share capital and issuing such a large quantum of shares, Oladokun and other members of the Starcomms’ Board, “proposed that the share capital of Starcomms be reorganised through a restructuring of the issued share capital of Starcomms, that will entail the transfer of the nominal value of the scheme shares from the share capital account to the Capital Redemption Reserve Account.”

    As a result, “shareholders of Starcomms’ ordinary share so restructured, shall retain one ordinary share with a nominal value of 50 kobo in Starcomms, credited as fully paid up for every 100 ordinary shares with a nominal value of 50 kobo each previously held.”

    Capcom will contribute assets, cash and other things. Capcom will also pay off Starcomms’ outstanding NCC obligations up to $13million in exchange for receiving the subscription shares and conditional share subscription rights.

    The investment assets that Capcom will bring to the table “comprise the entire issued share capital of Cyancom and HIP oils, which include the spectrum of MTS and the CDMA business of Multi-Links. The firm has negotiated conditional sale and purchase agreement with the vendors of the assets, namely AMCON and Helios Towers,” Oladokun said.

    Capcom intends to use a portion of the subscription shares it receives after placement to part-settle the consideration due to AMCON and Helios Towers for the investment assets. At completion, these assets will be transferred from Capcom to Starcomms via share transfer.

    Capcom will inject the investment cash into Starcomms to finance the integration of the spectrum of MTS and the CDMA business of Multi-Links, meet on-going short term losses in the business, pay key trade creditors and drive the new business plan.

    As part of the separate and subsequent underwritten Rights Issue, Starcomms is expected to receive a further $20million from shareholders, which will also be applied towards executing the company’s new business plan.

    Capcom proposes to raise the required funding for the proposed transaction from some sources, including $50million private placement of new equity in Capcom, in connection with which it had signed a backstop underwriting agreement with MBC, a private trust; debt financing from Afrexim and Diamond Bank Plc; and  the sale of certain assets in Multi-Links to Suburban, a major independent supplier of Internet protocol backbone services in Nigeria.

    Starcomms shares held by members of the Board would be subject to the scheme, but Capcom said it attached great importance to the skills and experience of the employees of Starcomms and expects them to play a significant role in implementing the business plan.

    To this end, Capcom has assured the Board of Directors of Starcomms that the employment rights and pension rights of Starcomms employees would be safeguarded on completion of the scheme and subsequent private placement.

  • AMCON acquires equity stake in Starcomms

    AMCON acquires equity stake in Starcomms

    Assets Management Company of Nigeria has acquired a stake in the debt ridden telecommunications company Starcomms.

    As part of the overall transaction with Capcom, the special purpose vehicle through which AMCON will have a share in Starcomms, both Helios Investment Partners, an African-focused private investment firm and AMCON, will acquire equity stakes in Starcomms.

    These are derived from the Capcom shareholding on completion of the transaction.

    Addressing shareholders in Abuja at a court ordered meeting on the acquisition, the interim Chief Excutive Officer of Starcomms, Mr. Olusola Oladokun, said the acquisition became necessary because “Starcomms is currently facing operational and financial challenges on account of the shifting competitive landscape in Nigeria’s telecommunications industry.”

    The recent challenges, he added, “have resulted in the company generating operational losses and functioning with unsustainably high levels of debt and the reduction of weekly cash collections to unsustainable low levels.”

    “As a result, the board of Starcomms decided to accept a proposal from Capcom to inject much needed capital and assets into Starcomms to facilitate a strategic turnaround and improve the competitive position of the company,” he added.

     

  • AMCON yet to vacate Capital Oil’s premises

    A week after an Abuja High Court ordered the Assets Management Corporation of Nigeria (AMCON) to vacate the premises of Capital Oil and Gas Industries Limited, the agency is holding on to the facilities and has directed the police not to allow any of the company’s staff entry into the premises.

    Justice Abdul Kafarati of the Federal High Court, Abuja, had on December 13 vacated its ex-parte order of November 13, 2012, which gave AMCON power to take immediate possession of the properties and assets of Capital Oil and Gas Industries Limited and those of its Managing Director, Mr Ifeanyi Ubah over alleged N48.014 billion debt.

    Following the December 13 ruling, the management of Capital Oil proceeded to resume operation yesterday, but both the management and staff were refused entry by the police guarding the company on orders of AMCON.

    A management staff member of Capital Oil, Mr Ugochukwu Ehighibe, told reporters that “neither the company’s lawyers, nor the embattled Managing Director, Mr Ifeanyi Ubah nor any staff of the company for that matter, has been served with any court order staying the execution of the December 13, 2012 order or a notice of appeal on the court order.”

    Efforts to reach AMCON for comments proved abortive, as text messages and telephone calls to its officials were not replied to.