September 22, 2020
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AMCON takes possessions of two firms assets over N810 mln debt

By on August 9, 2020 0 136 Views

Nigeria’s ‘bad bank’ the Asset Management Corporation of Nigeria (AMCON) has taken over an asset belonging to Safequip Nigeria Limited over its indebtedness amounting to about N470 million in compliance with the ruling of a Lagos-based Federal High Court.
The ruling by O.O Oguntoyinbo in March granted AMCON the power to take possession of the property of the company situated at No. 20 Babatunde Jose Street, in Victoria Island area of Lagos State.
In a statement on Sunday, AMCON head of corporate communication, Jude Nwauzor said the corporation has also taken possession of seven other properties belonging to R.C. Omeaku & Sons Limited including commercial property situate at Egbeada, KM 4 Orlu Road; a property at 14, Okigwe Road; 175 Tetlow Road; 2, Douglas Road, 13, Royce Road; and 2, Ogugba Street, all in Owerri, the Imo State Capital.
Nwauzor said the take over of R.C. Omeaku & Sons Limited was ordered by the ruling of Justice A.M Liman, riding on the order of Justice I.N Buba of the Federal High Court Lagos.
He said AMCON obtained the judgment due to the failure of the company to settle its indebtedness of almost N340 million to the Corporation.
In compliance with the enforcement orders, AMCON at the weekend took effective possession of all the above-mentioned properties as ordered by the court.
The statement said the legal process against Safequip Nigeria Limited was protracted because the loan was purchased from First City Monument Bank (FCMB) during the second phase of Eligible Bank Asset (EBA) purchases carried out by the Corporation in its relatively early days.
On the other hand, the portfolio of R.C Omeaku & Sons Limited were purchased during both the first and second phase of EBA purchase from Union Bank Plc and the defunct Diamond Bank Plc respectively.
“As is tradition with AMCON to explore all known peaceful means of resolution of such debts, the Corporation offered both companies and their promoters ample timeline and all sorts of support that would enable them to repay the huge debt to no avail.
“The obligors remained recalcitrant and unwilling to repay their debt to AMCON, which led to both cases ending up in court and the eventual order in favour of AMCON,” the statement said.
The Corporation has deployed security agencies at different locations to ensure that the assets are secured.

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