AMCON Takes Over Assets of Defunct Afrijet Airlines

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Asset Management Company of Nigeria, AMCON has continued its debt recovery visits. Afrijet Airlines, a defunct local carrier is its latest host.

Afrijet is owned by Continental Aviation Services Ltd., Vitalis Ibe is the executive chairman of the company. AMCON said in its statement that Professor. Gbolahan Elias is the receiver/manager on the matter.

As to the gravity of the debt, AMCON confirmed that, Afrijet Airlines ‘the obligor owes AMCON nearly N10 billion. AMCON purchased the Eligible Bank Assets (EBAs), sometime in 2011 from the defunct FinBank and Bank PHB. The order also affects Ibe’s Continental Aviation Services Ltd.’

AMCON has since appointed Prof. Gbolahan Elias (SAN), as Receiver/Manager. The agency said it is simply executing an injunction granted against the airline by Justice Chuka Obiozor of the Federal High Court, sitting in Lagos.

AMCON confirmed that it has taken possesion of Afrijet’s assets and that of the obligor, Vitalis Ibe. It includes his property located at plot 22, Jimoh Odutola St., off Eric Moore Road, Surulere, Lagos and Afrijet’s office at the local airport in Lagos.

Confirming why its fervor to recover debts is fierce, AMCON said ‘under the leadership of Mr Ahmed Kuru, had recently increased the tempo of its recovery and was going after some of its 400 obligors whose total debts account for more than N4.5 trillion’

AMCON was created in 2008 after a banking crisis led to the take over of toxic assets from many banks who were almost collapsing. The Nigerian aviation sector was accorded several debt instruments prior and after that period. However, the lack of sound financial planning, wrong business model and poor corporate governance led to a high default from obligors.

 

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