The Assets Management Corporation of Nigeria, AMCON, on Monday, denied taking over the management of Aero Contractors.
The Managing Director of AMCON, Mustafa Chike-Obi, denied the takeover in an interview with PREMIUM TIMES, saying “reports that AMCON has taken over Aero Contractors is not true”.
“We took over the debts, not the company. We have had the debts for almost a year now. Therefore, what AMCON has done does not have any impact on Aero Contractors’ normal business,” Mr. Chike-Obi said.
AMCON had taken over the debts of Aero Contractors, reportedly in excess of $200million. This spurred up speculations that the company had taken over the operations of Aero Contractors, and heightened fears of a failed aviation sector.
The AMCON boss did not volunteer further details and information on the terms and conditions of the takeover of the debts.
AMCON, which was established through the Asset Management Corporation of Nigeria Act, 2010 (AMCON Act), is mandated to efficiently resolve all problems associated with non-performing loans in Nigerian banks, financial institutions and corporations.
Section 1 of the Act charges the company with the responsibility of acquiring the non-performing loans from banks and other financial institutions by receiving the underlying collaterals and filling the remaining capital inadequacy challenges necessary to make the country’s economy stronger and viable.
The Central Bank of Nigeria, CBN, on Friday listed Aero Contractors among about 419 corporate entities and organisations whose huge debt stocks disqualify them for further loan facilities from any bank or financial institution within the country.
Aero Contractor’s Chief Financial Officer, Omoke Enyi, confirmed that debt take over by AMCON. He said Aero is currently going through a restructuring exercise and the process is pending final approval by AMCON board soon.
Mr. Enyi however alluded to some of the terms and conditions Aero may have been given by AMCON before acceding to the takeover. Aero will be allowed limited access to funds by the banks through AMCON for its working capital, Mr. Enyi said.