The Asset Management Corporation of Nigeria (AMCON) has taken possession of Cedar Oil & Gas Exploration and Production Limited over a N29 billion bad debt, as it appointed a Receiver/Manager to oversee the operations of the oil firm.
In compliance with a court order, the undertaker took over the assets of the company, which was promoted by Olajide Omokore and others as ordered by the Court through Mr Godwin Nwekoyo, the Receiver/Manager, who also received protective orders from the court.
What it means: Omokore has lost all assets of the company. The assets are Block A, No. 46 Gerrard Road, Ikoyi Lagos State, comprising of 26 flats; Plot 1236, River Niger Street, off River Benue Street, Maitama, Federal Capital Territory, Abuja; and Marion Apartment, Block 8, No. 4 & 5, Onikoyi Estate, Banana Island, Lagos State, consisting of 43 units of apartments.
Others are No. 33A, Cooper Road, Ikoyi, Lagos State; No. 8, Gerrard Road, Ikoyi, Lagos State as well as Manson Apartments, No. 6, Gerrard Road, Lagos State comprising of 60 units of three-bedroom apartments.
Why it matters: Cedar Oil & Gas had to lose its assets as Omokore and other directors, Isiaka Muhammed, Joseph Bazuaye, Silas Ode failed to pay AMCON their admitted sum of over ₦15 billion out of the total outstanding indebtedness of ₦29billion owed to the recovery agency of the federal republic of Nigeria
Head, Corporate Communications, AMCON, Jude Nwauzor, explained that AMCON only acted in pursuant to its mandate to obey another court order as a responsible organization with due respect for the laws of the land.
He said, “We saw it coming because the said debt is long overdue. You can see how these top AMCON obligors are taking all Nigerians for a ride. Even when they admitted repaying over ₦15billion owed AMCON, they still did not honour their own agreement, which they did not make under duress.
“I want you to understand that before we get to this stage with any obligor, we must have patiently tried to resolve the matter without going to court. Anytime we end up taking over assets such as in the case of Cedar Oil & Gas Exploration and Production Limited as well as its directors, Mr Olajide Omokore and others, it means all efforts by AMCON to get the obligor to amicably repay the indebtedness have proved abortive.”
According to him, once AMCON had exhausted all avenues of peaceful resolution, there is no other option available for it than to commence enforcement action against the firm and Mr Olajide Omokore the promoter of Cedar Oil & Gas Exploration and Production Limited as well as the other directors as ordered by the Court and as provided under Section 49-52 of the AMCON Act.
Nairametrics had reported that the corporation was set to seek judicial intervention to recover over N5 trillion debt in the hands of few Nigerians.
Managing Director/Chief Executive Officer, AMCON, Ahmed Kuru, explained that aside from collaborating with the likes of the Economic and Financial Crimes Commission (EFCC); Independent Corrupt Practices and Other Related Offences Commission (ICPC);
Nigerian Financial Intelligence Unit (NFIU); Nigerian Deposit Insurance Corporation (NDIC), the Central Bank of Nigeria (CBN), the agency would extend a hand of fellowship to the judiciary whom he said must strongly support AMCON to achieve the recovery expectations of the federal government.
He said, “The new Act has expanded the definition of the obligors of AMCON to include the directors meaning that AMCON would more than ever before need the support of the judiciary especially the federal High Court, which is AMCON’s court of first instance and most importantly, the Court of Appeal if the Corporation stands the chance of recovering the over N5.4trillion owed it by obligors before the sunset.