As part of its recovery efforts, which has been stepped up in the last couple of months, the Asset Management Corporation of Nigeria (AMCON) has initiated steps to wind-up MRS Holdings Limited over its inability to pay a whopping N81billion owed AMCON.
AMCON said it commenced a winding-up proceeding against MRS Holding Limited owned by top businessman, Alhaji Sayyu Dantata, at a Federal High Court, Lagos after all entreaties made by it to Alhaji Dantata and his MRS to settle the outstanding debt failed. AMCON had in Suit No. FHC/L/CP/923/2016 asked the Federal High Court, Lagos Division to allow it force the insolvent MRS, a major player in the downstream sector of the oil and gas industry in Nigeria into compulsory liquidation.
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MRS entered into an agreement with AMCON in February 2014 to restructure the debt, which then stood at over N74 billion. In the agreement executed by Alhaji Dantata and another Executive Director of the oil company, MRS agreed amongst other conditions that; in the event of default, all concessions granted under the terms of settlement shall be revoked and the facility called in at the discretion of AMCON.
Alhaji Dantata and one of his directors also signed a default indemnity, which stated that if MRS Holdings Limited failed to pay any sum (of principal, interest or otherwise) due or to become due as agreed, MRS Holdings Limited shall pay additional interest at a default rate determined by AMCON on the unpaid sum from the date when such payment was due up to the default payment.
It will be recalled that only about 400 obligors of AMCON account for more than N4.5 trillion, which is approximately 80 per cent of the total outstanding loan balance of the Corporation’s over twelve thousand accounts with obligors that have become recalcitrant over time despite obvious efforts of the Corporation.
To deal with the situation however, AMCON recently increased the tempo of its recovery activities using firmer negotiation strategies as well as utilising the special enforcement powers vested by the AMCON Act to compel some of its recalcitrant debtors especially those that are politically exposed and business heavyweights to repay their debts.