Key highlights
- AMCON has taken over assets belonging to Glano Nigeria Limited over N2.4 billion debt.
- The takeover was ordered by the court after several years of legal battles.
- The court also ordered AMCON to take necessary steps to recover the debt by seizing and taking any money, banknotes, cheques, bills of exchange, promissory notes, and all forms of bonds of security for money to recover the debt.
The Asset Management Corporation of Nigeria (AMCON) has taken over assets belonging to Glano Nigeria Limited over N2 billion in debt.
The takeover was announced on Monday In a statement by Jude Nwauzor, the head of the corporate communications department of AMCON.
He revealed that the takeover was done in compliance with an order of Justice I. N. Buba of the Federal High Court Lagos Division.
He said on April 6, AMCON took possession of Glano’s property in Port Harcourt in a seamless manner as directed by the court.
The court directed the Nigerian police force, officials of the court, and other security agencies to assist AMCON in securing the assets.
The statement
He noted that the court ordered the takeover after looking into efforts made by AMCON to resolve the loan amicably.
“In compliance with the enforcement order, AMCON on Thursday, April 6, 2023, took effective possession of Glano Nigeria Limited’s property located at no. 22 Woji Road Port Harcourt, the Rivers state capital, which had been under the management of Sterling Law Alliance since 2019.
“Apart from granting AMCON possession of the property situated at no. 22 Woji Road Port Harcourt, the court also ordered AMCON to take all necessary steps required to realize the assets of the obligor within the judicial division, by seizing and taking any money bank notes, cheques, bills of exchange, promissory note, and all forms of bonds of security for money, with a view to realizing the huge outstanding debt.
“The case of Glano Nigeria Limited and its promoter has been a protracted issue because the loan was purchased during the third phase of eligible bank assets (EBA) from United Bank for Africa (UBA) Plc way back in 2013.
Since then, AMCON has offered the obligor a good measure of olive branches and explored all avenues to resolve the matter amicably, but the obligor and his company, Glano Nigeria Limited, remained recalcitrant and unwilling to repay the huge debt to the corporation.”
What you should know
- On July 19, 2010, former President Goodluck Ebele Jonathan signed into law the Asset Management Corporation of Nigeria Act, 2010 (AMCON Act).
- AMCON was established pursuant to section 1 of the Act to efficiently resolve the problems associated with non-performing loan assets of Nigerian banks.
- AMCON is charged with the responsibility of acquiring non-performing loans from banks and other eligible financial institutions.
- In 2019 President Muhammadu Buhari signed the AMCON amendment bill into law to further amend the 2010 Act.
- The amendment increased the powers of AMCON in the enforcement of debt recovery.