AMCON Takes Over Aero Contractors

Aero ContractorsThe Asset Management Company of Nigeria (AMCON) has dissolved the Board of Aero Contractors and appointed a Manager over the affairs of the airline.

The decision on Friday, according to AMCOM was in furtherance of the statutory responsibility of acquiring Eligible Bank Assets and putting them to economic use in a profitable manner.

AMCON is both the majority shareholder and creditor of Aero.

An Industry-based management team will be put in place to provide the highest level of professional competence which would ensure a quick repositioning of the company.

AMCON said its management decided to make changes in the Management of the airline to protect the brand heritage of the airline.

It also maintained that its intervention was in the public interest to sustain and improve the quality of service which Aero was delivering.

The company further assured regulatory authorities, the traveling public and key stakeholders that “the airline would continue to operate on the solid foundation of safety and security with excellent customer service”.

AMCON has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last five years.

The decision of AMCON came barely a month the Airline disembarked passengers from a plane with a ladder in Bauchi State.

After the incident, the Nigerian Civil Aviation Authority (NCAA) imposed an “applicable sanction” on the airliner in line with Nigerian Civil Aviation Regulations (NCARs).

AMCON Insists It Can Sell Mainstream Bank To Willing Buyers

Mustapha Chike ObiThe planned sale of Mainstream Bank by the Asset Management Company of Nigeria (AMCON) has continued to generate controversy, with AMCON saying that it reserves the right to sell the bank to willing buyers.

The shareholders of the defunct Afribank, now Mainstreet Bank, had placed a cavear emptor on AMCON’s invitation for expression of interest for the acquisition of AMCON’S shares in Mainstreet Bank Limited.

The Managing Director of the AMCON, Mr Mustapha Chike Obi, on Tuesday reacted to the publication, insisting that the supposed shareholders had no right to write such publication as AMCON was the sole owner of the financial institution.

“There is only one share holder of Mainstream Bank and that is AMCON. The old Afribank has been grounded legally by the court, so Afribank no longer exists. When you say shareholders of Mainstream Bank it is only AMCON.

He said that AMCON took over the bank when it provided 450 billion Naira to ensure that the depositors with Afribank did not lose their funds.

“Anyone willing to give back that money to AMCON can have the bank back,” Mr Chike Obi said, stressing the need for AMCON to recoup its funds.

He said that the decisions of the acclaimed shareholders over the planned sales was wrong as the owners of the bank had destroyed the banks and decided to have the bank back at no cost.

Chike-Obi, who was our guest on our business programme business morning on Tuesday, insisted that there was no case in court that prevents AMCON from selling Mainstreet Bank limited.

According to him the sale of the bank had been muted for over a year now and everything has been done transparently.

He confirmed that 25 investors had responded to the expression of interest request so far and the process was still ongoing.

AMCON Appoints Citigroup, Vetiva To Manage Sale Of Troubled Banks

The Asset Management Company of Nigeria (AMCON), which holds non-performing assets of troubled banks, said it had named Citigroup and Africa-focused investment bank Vetiva Capital to manage the sale of its shares in one nationalised bank.

AMCON nationalised Afribank, Spring Bank and Bank PHB in 2011 when they failed to find new investors before a recapitalisation deadline. It then recapitalised them and changed their names to Mainstreet, Enterprise Bank and Keystone Bank, respectively.

AMCON Chief Executive Mustapha Chike-Obi said in an interview on Thursday it planned to sell 100 percent of Enterprise Bank through Citigroup and Vetiva but would organise the sale of the other two lenders at a later date.

He had previously said the advisers would solicit expressions of interest from prospective investors and decide on the best way to proceed.

AMCON said it was on track with its timeline to complete the sale of all three lenders by the third quarter of next year.

AMCON Seek Advisers On Selling Mainstreet, Enterprise, Keystone Banks

The Chief Executive Officer of Asset Management Company (AMCON), Mustapha Chike-Obi

The Asset Management Company of Nigeria (AMCON) has announced that it will appoint financial advisers by June 15 to manage the sale of Mainstreet Bank, Enterprise Bank and Keystone Bank.

The three banks were nationalised in 2011 following mismanagement of bad loans and recapitalised by AMCON.

AMCON’s Chief Executive Officer, Mustapha Chike-Obi, made this known on Thursday in an interview where he revealed plans to sell 100 percent of each of the bank.

He however added that AMCON is yet to decide on the best way to proceed.

“We have advertised for a financial adviser who will take charge of the process” said Chike-Obi.

He said the advisers would solicit expressions of interest from prospective investors.

Mr Chike-Obi said he expected strong interest in the three banks from local and foreign institutions, pointing out that South Africa’s leading bank, FirstRand, had informed AMCON of an interest in acquiring Keystone bank.

FirstRand CEO Sizwe Nxasana told Reuters last week that the South African lender was keen on buying either Keystone or Mainstreet.

Skye Bank is also expected to bid for one of the three banks, depending on valuations, its CEO Kehinde Durosimi-Etti told a shareholder meeting last week, where management sought approval to raise N50 billion.

AMCON said last week it expected to complete the sales by the third quarter of 2014.


IMF Calls For The Closure Of AMCON

The International Monetary Fund (IMF) has recommended the winding down of the operation of the Asset Management Company of Nigeria (AMCON) as soon as possible.

This recommendation is contained in the just released summary of the IMF’s Article 4 consultation report.

The fund commended the Central Bank of Nigeria’s (CBN) success in restoring financial stability after the 2009 banking crisis but says the winding down of AMCON has become necessary so as to curb what it called “moral hazard and fiscal risks”.

Last year, AMCON reported a N2.37 trillion loss after tax, three years after it was set up to absorb the bad debts of banks in the aftermath of a financial crisis.

IMF also welcomed the CBN’s commitment to address supervisory and regulatory gaps identified in the financial stability assessment update, particularly the need to strengthen cross-border supervision and the regime against money laundering and terrorism financing.

AMCON was set up by the act of 2010 and provides a 10 year life span for the company.

CBN’s director of communication, Mr Ugochukwu Okoroafor, explained  that the IMF report has only suggested that the 10 year sunset clause in the act be reduced and not for AMCON to be liquidated immediately as being reported by some media organisations.


Ogboru ‘Is A Chronic Debtor’, AMCON Tells Court

The Asset Management Corporation of Nigeria (AMCON) on Thursday told a Federal High Court, Lagos that a former Delta Governorship Candidate, Great Ogboru “is a chronic debtor”.

Former Delta Governorship Candidate, Great Ogboru

Counsel to AMCON, Kunle Ogunba disclosed this in reaction to two motions filed by Mr Ogboru, one, seeking to set aside a court order, which allowed the appointment of a receiver manager to his properties

On the second leg of the motion, Mr Ogboru is challenging the jurisdiction of the court to hear the suit, which he described as an abuse of court process.

Justice Okon Abang had made the order on 13 January, appointing a receiver manager to the defendant’s property, following a suit filed by AMCON over an unpaid loan transaction.

AMCON in their affidavit had affirmed the indebtedness of Mr Ogboru to Equatorial Trust Bank (now Sterling bank), and his unwillingness to liquidate the debt.

Arguing the motion, Mr Ogboru’s counsel, McCarthy Mbadugha said the suit was an abuse of court process because there was a pending suit before a Federal High Court, Abuja on the same subject matter.

Mr Mbadugha added that the Abuja court had earlier issued an order restraining AMCON perpetually from taking over Mr Ogboru’s properties.

He also faulted the appearance of Mr Ogunba in the matter, saying the lawyer already has financial interest in the matter, having been appointed as receiver/manager.

Mr Mbadugha, therefore, urged the court to dismiss the suit.

Responding, AMCON’s counsel, told the court that the action of people like Mr Ogboru was responsible for the collapse of some banks in the country.

He said the defendant had agreed that the principal loan sum of N33 million was outstanding.

The AMCON lawyer argued that Mr Ogboru had not even liquidated his debt, but wants the court to determine the interest.

He told the court that Mr Ogboru’s motion was misconceived, and ought not to see the light of day.

Justice Abang has fixed March 22 for Mr Ogboru’s reply on point of law to AMCON’s argument.

Court Orders AMCON To Reopen Capital Oil

A Federal High Court in Abuja has set aside an order which allowed the Asset Management Company of Nigeria (AMCON) to shut down the facilities of Capital Oil on November 13, 2012.

In setting aside the order, Justice Abdul Kafarati ruled that the court has the powers to set aside its orders especially when justice demands it does so.

He added that Capital Oil was an on-going concern when it was shut down and the business of AMCON is not to stifle businesses.

Justice Kafarati ordered AMCON to reopen the facilities while it retains the title deeds of the facilities and also enter into negotiation with the company on how to pay the debt.

The Judge had on November 13, ordered AMCON to take immediate possession of properties and assets of Capital Oil and Gas Industries Limited, following allegation that the oil firm is indebted to AMCON to the tune of N48.014 billion.

Capital Oil re-approached the High Court on November 22, and asked it to vacate the interim order.

Meanwhile an attempt by AMCON to get the court’s order to sell off proceeds stored in the company’s facility and an order as to where the money will be retained hit a brick wall.

Counsel to AMCON, Mr Ricky Tarfa standing on Order 28 of the court rules, asked the court to order the sales of products held in the capital oil storage facilities, he further asked that proceeds of the sale be held in an account as ordered by the court pending the determination of the owners of the fund.

Rejecting the oral application, counsel to Capital Oil told the court that such an application must come formally and besides that, products in the Capital Oil facility belong to the Nigerian National Petroleum Corporation (NNPC).

Justice Kafarati ordered AMCON to bring a formal application as a result of the many interests on the products and adjourned the suit to the 15th of January 2013 for definite hearing.