The Asset Management Corporation of Nigeria, AMCON, on Friday successfully took over possession and management of Dansa Foods Processing Company Limited belonging to Sani Dangote.
Mr. Dangote is the younger brother to Aliko Dangote, Africa’s richest man.
The takeover of the company followed the orders of the Federal High Court granted by Justice C. Olatoregun in the exparte application filed by the Receiver/Manager appointed by AMCON in March 2016, Ekokoiesua Urua.
The takeover of control of the company is part of AMCON’s efforts to recover over N400 million outstanding debt, out of over N4 billion owed Union Bank, which the company failed to pay.
“To give effect to the order of the Federal High Court, Lagos, our law firm, as the legally appointed Receiver/Managers, on behalf of AMCON, proceeded to immediately seal off the premises of the company located at #1 Alfred Rewane Road, Falomo, Ikoyi, Lagos,” Mr. Urua said on Friday in a statement.
Mr. Urua, a lawyer in the law firm of Ita Enang & Co., solicitors to AMCON, said on Friday he had earlier in May successfully taken over another company affiliated to the Dangote family, Bulk Pack Services Limited.
Bulk Pack is a major manufacturer and supplier of packages for beverage drinks producing companies in the country.
The lawyer said his firm would be proceeding to Kano on Monday to effect the takeover of another company belong to the Group over similar offences.
In 2008, Union Bank had granted Dansa Foods Limited’s request for a N5.2 billion loan.
The loan comprised an overdraft of N500 million; short term loan for advertisement (N500 million), equipment lease (N300 million), equipment lease (sale and lease back, N300 million), and import finance (N3.6 billion).
The loan was disbursed by the bank, and fully utilized by Dansa Foods company, which duly executed a deed of all assets debenture in favour of Union Bank
However, despite all efforts by the bank, including several letters by its solicitors, the company did not liquidate its outstanding indebtedness of about N400 million.
Subsequently, the company was taken over in 2015 by AMCON, an agency established to buy over the bad debts of big companies and turnaround their management to recovery.
The takeover of the company is part of efforts by AMCON to recover the outstanding debt.