The Asset Management Company of Nigeria (AMCON)’s take over train seems to be on the move and this time it has stopped at Gateway Portland Cement. The bad bank has secured a court order to appoint a receiver manager to take over the firm’s assets.
Key highlights
- The court order was granted today by a Federal High Court based in Ogun State.
- The company is owing AMCON an over N3 billion.
- The court order also instructs the company to handover all assets to AMCON’s receiver manager.
- The Nigerian Police have been mandated by the courts to assist Charles Adeogun-Phillips, the receiver appointed by AMCON to enforce the order.
Why AMCON is going tough
The company is one of several high-profile firms that AMCON has taken over recently. AMCON, had few months ago gotten a similar order taking over the popular Intercontinental Hotel in Lagos. As AMCON’s termination date draws nearer, the bank faces greater pressure to get debtors to settle their debts. About 350 borrowers owe AMCON an estimated 80% of its N2.5 trillion loan. Court orders like this tend to force owners of the company to negotiate with AMCON. AMCON may then decide to approach the court to vacate the order, once both parties agree on a repayment schedule.
Gateway Portland Cement was founded in 2002 and is located in Abeoukuta Ogun State. The company is engaged in bagging of bulk cement and has an installed capacity of 998,640 tonnes per annum. As at 2008 however, the company was operating at 10% capacity. AMCON was established in July 2010 by an Act of the National Assembly, and has a lifespan of 10 years.
