AMCON clarifies court judgement on receivership over Arik Air

April 02

22:08 2023

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The Asset Management Corporation of Nigeria (AMCON) has provided clarification to a recent court ruling on the receiver/manager appointment of Arik Air Limited.

In a statement issued on Sunday, Jude Nwauzor, head of corporate communication, AMCON said, the Lagos federal high court judgement on March 31, 2023, was in favour of AMCON’s appointment of the receiver/manager of Arik.

A receivership is a remedy available to secured creditors to recover amounts outstanding under a secured loan in the event the company defaults on its loan payments.

A receiver is appointed in a shareholder dispute to complete a project, liquidate assets or sell a business.

Recently, media reports said the court had ruled that the attempt to transfer Arik Air Limited’s assets by AMCON to NG Eagle Airlines and Super Bravo Limited was not in the best interest of Arik.

Speaking on the issue, Nwauzor said the reports on the court ruling were incorrect.

The AMCON spokesperson said the court’s judgement affirmed the corporation’s authority and competence to make such appointments.

He added that the court did not rule against the appointment of the receiver/manager, neither did it grant all of the plaintiffs’ prayers.

“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,” Nwauzor said.

“In any event, AMCON and the receiver/manager are dissatisfied with certain parts of the judgment relating to AMCON’s dealings in specific transactions concerning limited assets.

“We are exercising our constitutional rights to appeal, in respect of these.”

Nwauzor, however, said the appeal does not impact on Arik’s continued operations.

H added that the receiver/manager retains their authority to oversee the airline’s affairs “as the court has already confirmed their appointment as receiver”.

AMCON, therefore, urged media houses and the public to rely on certified true copies (CTC) of court judgments to report on rulings accurately.