800m debt: AMCON seizes assets of R.C. Omeaku & Sons Ltd., Safequip Nig. Ltd

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Jude Nwauzor, Head, Corporate Communications Department, AMCON

MONDAY, August 10, must be a very bad day for the R.C. Omeaku and Sons Ltd and Safequip Nig. Limited. The Asset Management Corporation of Nigeria, AMCON, following the order of Justice O.O Oguntoyinbo of the Federal High Court Lagos Division, took over the asset belonging to Safequip Nigeria Limited over an indebtedness of over N470 million.

Realnews recalls that Justice Oguntoyinbo gave the order on March 23, at the peak of the dreaded coronavirus, COVID-19, pandemic granting AMCON absolute and exclusive possession of the property situate at No. 20 Babatunde Jose Street, in Victoria Island area of Lagos State.

Similarly, Justice A.M Liman, riding on the order of Justice I.N Buba of the Federal High Court Lagos, also gave another order granting AMCON the possession of seven properties belonging to R.C. Omeaku & Sons Limited including commercial property situate at Egbeada, KM 4 Orlu Road; property at 14 Okigwe Road; 175 Tetlow Road; 2 Douglas Road, 13 Royce Road; and 2 Ogugba Street, all in Owerri, the Imo State capital.

The order was granted to AMCON due to the company’s failure to settle its indebtedness of almost N340 million owed to the corporation, which has been a subject of litigation for some time now. In compliance to the enforcement orders, AMCON at the weekend took effective possession of all the above-mentioned properties as ordered by the court.

The case of Safequip Nigeria Limited has been protracted because the loan was purchased from First City Monument Bank, FCMB, during the second phase of Eligible Bank Asset, EBA, purchases carried out by the corporation in its relatively early days.

Realnews reports that the portfolio of R.C Omeaku & Sons Limited were purchased during both the first and second phase of EBA purchase from Union Bank Plc and Diamond Bank Plc, respectively.

As is tradition with AMCON to explore all known peaceful means of resolution of such debts, the corporation offered both companies and their promoters ample timeline and all sorts of support that would enable them repay the huge debt to no avail. The obligors remained recalcitrant and unwilling to repay their debt to AMCON, which led to both cases ending up in court and the eventual order in favour of AMCON.

Contacted, Jude Nwauzor, Head, Corporate Communications Department of AMCON, confirmed the enforcements, adding that the corporation deployed security agencies at the different locations to ensure that the assets are secured.

According to him, the takeover is just a glimpse of the many heavy enforcements that would follow in the coming months given the amended AMCON Act 2019 that was signed into law by President Muhammadu Buhari last year, which provides AMCON with additional powers in its operations.

– Aug. 11, 2020 @ 9:59 GMT |

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