The Asset Management Company of Nigeria (AMCON) recently obtained an interim forfeiture order from a Federal High Court sitting in Lagos with respect to the assets belonging to Sea Petroleum Oil and Gas Limited.
The company is owned by former Minister of Aviation and current Senator representing Anambra North constituency, Stella Oduah. This was due to the inability of the company to settle a N20 billion debt due to AMCON.
The court also granted AMCON the permission to appoint a receiver manager for the company.
Prior to this
AMCON purchased the loan from Union Bank in 2012. The Bad bank had obtained the court order after all efforts to reach an amicable settlement with the company and its promoters had yielded no results.
Assets seized
Among the assets covered by the forfeiture order are over 9000 square kilometres of land along Lekki-Epe Express Way; two Tank farms, a property at Maiyegun Tourism Zone, Lekki Peninsula Scheme 11, Lagos Island and a filling station complex at kilometre 14, Lekki Epe Expressway, Ikota, Lagos State.
In addition, the court also ordered the freezing of the funds of Sea Petroleum & Gas Limited and its affiliated companies and principal promoters held anywhere by any entity or persons in Nigeria.
AMCON’s Receiver, Moyosore Jubril Onigbanjo, SAN has also been authorized to take over all assets pledged as collateral for the facility by Sea Petroleum Oil & Gas Limited.
Sea petroleum and gas group was established in 1992 as an independent Marketer of Petroleum and Allied Products in Nigeria with offices in Lagos, Port Harcourt, Warri, Abuja, Onne, Eket, Calabar, and Kaduna.
The company specializes in all aspects of Petroleum Marketing including distribution of petroleum and allied products, management and consultancy services, marine/coastal delivery as home delivery.
Ok, what is the end game for Amcon on this asset. Sell it back to the principal owner. Buy bad asset from Union bank thereby making union bank balance sheet healthy transfer to amcon sheet as bad and enter into a payment plan with the principal owner. A vicious cycle with no end in sight.
Nigeria needs a dedicated bankruptcy court. With sole objective of resolving bad business loans with all parties involved while keeping the coy ongoing.