AMCON to take over assets of chronic debtors

The Asset Management Corporation of Nigeria will obtain court order to take over assets of some debtors who have made no reasonable progress to pay back their debts, investigation by our correspondent has revealed.

It was gathered from a top official in AMCON on Tuesday that although some debtors were already paying back their debt, the position of some debtors had not changed.

The source who preferred not to be mentioned because of the sensitive nature of the issue, said, “The position of the debtors’ list keeps changing, more debts have been recovered. However, our position is still clear on those who have refused to pay. You saw what we did to Delta Steel. We will not hesitate to use the full force of the law on any company that refuses to pay.”

AMCON had finalised plans to take over Delta Steel Company in Ovwian-Aladja, Delta State from Global Infrastructural Holdings Limited, for failing to meet its debt obligations.

It had also obtained a court order to take over the firm from GIHL for its inability to settle a N30bn syndicated loan, which it obtained from five banks.

The N30bn facility had been written down by the five banks as a non-performing loan and transferred to AMCON as part of its takeover of non-performing loans.

The Managing Director, AMCON, Mr. Mustafa Chike-Obi, said, “We will do whatever we need to do so far it’s within the law to get the debts back.”

He, however, refused to comment on the statement by the House of Representatives to probe the Otedola and AMCON debt deal.

The House on Tuesday faulted the N140.9bn debt settlement deal between the Chairman of Zenon Oil and Gas and Forte Oil Plc, Mr. Femi Otedola, and AMCON, saying the procedure was unacceptable.

Chairman, House Committee on Media and Public Affairs, Mr. Zakari Mohammed, said the transaction was suspicious and that the lower chamber of the National Assembly would investigate it when it resumed from its one-week break.

In a statement made available to journalists, Mohammed said the transaction was done with “confidentiality and secrecy” regardless of the state of the Nigerian economy.

He said, “We have observed with interest the payment of N140.9bn, being the outstanding debt of a businessman, Mr. Femi Otedola, to AMCON. This payment was credited to AMCON’s Managing Director, Mustafa Chike-Obi.

“Obi confirmed that the AMCON board met last Thursday and approved the transfer of the businessman’s assets as well as undisclosed cash to AMCON as full payment and final settlement of Otedola’s liabilities.

“The seventh House of Representatives would, on return from its one-week oversight tour, constitute a committee to investigate the amount and the assets so transferred to AMCON. It is curious that AMCON, being a government’s establishment, which is under the purview of the National Assembly, could do that without the knowledge of the House. The National Assembly would be interested in getting full details of the transaction.”

The CBN recently barred banks in the country from extending further credit to 113 companies and 419 directors/shareholders, including those belonging to Otedola, Alhaji Sayyu Dantata, former Power Minister, Prof. Bart Nnaji, Mrs. Elizabeth Ebi and Dr. Wale Babalakin.

The CBN later said the debtors, including their firms, would be handed over to law enforcement agents, should they fail to repay their loans.

culled from the (Punch Newspaper)