Key highlights
- Controversy surrounds the takeover of Arik Air by AMCON, amid conflicting reports on the Federal High Court’s judgment.
- AMCON maintains that the judgment affirmed its takeover of Arik Air and did not affect the airline’s operations or the powers of the Receiver/Manager.
- AMCON plans to appeal certain parts of the judgment but asserts that they have no bearing on Arik Air’s continued operation.
The takeover of Arik Air by the Asset Management Corporation of Nigeria (AMCON) is generating controversies, even as the two organisations lay claims to the judgment delivered by the Federal High Court sitting in Lagos on Friday.
While earlier news monitored by our correspondent alleged that the Federal High Court stopped the decision to transfer Arik Air Limited’s assets to AMCON, a statement by a media consultant to AMCON debunked the claim, saying that the judgment affirmed its takeover of the airline.
AMCON’s interpretation of the court ruling
The statement from AMCON hinted that the Judgement clearly and without equivocation affirmed that AMCON was competent and empowered to appoint the Receiver/Manager of Arik.
It also maintained that the appointment by AMCON was proper and that the continued operations of Arik were not affected.
AMCON insisted that the judgment didn’t affect the operations of Arik or the powers of the Receiver/Manager to superintend the affairs of the airline. Part of the statement said:
- “The attention of the Receiver/Manager of Arik Air Limited (in Receivership) (Arik) and the Asset Management Corporation of Nigeria (AMCON) has been brought to several online publications concerning a judgment of the Federal High Court, Lagos delivered on Friday, March 31, 2023 (the Judgment).
- “The general public should please note that the Judgement clearly and without equivocation affirmed that AMCON was competent and empowered to appoint the Receiver/Manager of Arik, that the appointment by AMCON was proper, and that the continued operations of Arik are not affected. Put simply: the judgment does not affect the operations of Arik or the powers of the Receiver/Manager to superintend the affairs of Arik.
- “Specifically, the judgment did not either: (i) rule against the appointment of the Receiver/Manager of Arik or (ii) “grant all the prayers of the Plaintiffs” as stated in certain online publications. The court did hold that the Receiver/Manager was obligated to act in the best interests of Arik and other creditors – a point that AMCON and the Receiver/Manager have never disputed.”
Appeal by AMCON
The corporation added that in any event, AMCON and the Receiver/Manager were dissatisfied with certain parts of the judgment relating to its dealings in specific transactions concerning limited assets, stressing that AMCON was exercising its constitutional rights to appeal, in respect of these.
It reiterated that the issues under appeal had no bearing on the continued operation of Arik as a company in receivership, noting that the court had already affirmed this.
Just on Saturday, some online media (mot Nairametrics), alleged that the Federal High Court sitting in Lagos had stopped the decision to transfer Arik Air Limited’s assets by AMCON, to another company to take over their operations.
The ruling was allegedly given by Justice Ambrose Lewis-Allagoa of a Federal High Court.
What you should know
Arik Air, led by its founder Johnson Arumemi Ikhideits and Mary Arumemi Ikhide, co-plaintiff, dragged AMCON, its Group Head, NG Eagle Limited; Super Bravo Limited, and Nigeria Civil Aviation Authority (NCAA) before the Federal High Court over the taking-over of Arik Air Limited’s assets and management.
In the suit, the plaintiffs prayed to the court for four reliefs, which included a declaration that the duty imposed on the 1st Defendant by Section 553 of the Companies and Allied Matters Act 2020 to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best interest of the Plaintiffs as members of Arik Air Limited.
I don’t know why people still buy their tickets. What they do currently is to allow people book certain routes, few hrs before the flights, they will cancel and ask people to apply for refund and When they apply the struggle for refund starts. They are currently owning a lot people in the name of refund.