Auditors to Arik air, have discovered that the company’s debt may be more than the previously stated figure of N375 billion as they provide the following updates:
- The initial 12 weeks given to KPMG, may not be enough as new debts both local and foreign were being discovered.
- Spokesman for the airline, Mr Simon Tumba said the auditors could not give a timeline for the completion of their task.
- Sources close to the auditors said new debts were being discovered.
- The receiver/manager of the airline Mr Oluseye Opasanya in an affidavit filed in respect to Amcon’s take over of the airline said it was owing over N375 billion.
Amcon’s spokesman, Mr Jude Nwauzor said the organization had underestimated the situation of things at Arik.
The current management of Arik had in February this year appointed KPMG this year to audit the company’s assets and liabilities as at January 31st, 2017.
The delay in the audit findings and possibilities of additional debts has several implications for the airline. Potential investors may decide to shy away or value the company at a lower price. Finance minister, Kemi Adeosun recently stated that some foreign investors had shown interest in taking over the airline.
Amcon may have to budget more funds for settlement of claims and debts. The bad bank had in February this year taken over Arik air, and claims it has spent over N1.5 billion to keep the airline afloat.
