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🇳🇬 Nigeria /Economy & Trade

AMCON defends sale of Arik Air aircraft amid shareholder objections

From ThisDay · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • AMCON has justified the sale of a dismantled Arik Air aircraft, citing security interests held by Access Bank.
  • Arik Air shareholders dispute the sale, asserting that the airline had fully serviced the loan guaranteed by Access Bank before AMCON's takeover.
  • The shareholders have requested supporting documents for the alleged debt from the receiver manager, who they claim has not provided them.

The Asset Management Corporation of Nigeria (AMCON) has defended its decision to sell a dismantled Boeing B737-700 aircraft belonging to Arik Air, which is currently under receivership. AMCON stated that the aircraft was subject to security in favor of Access Bank, which exercised its rights to sell the asset.

The aircraft was subject to security in favour of Access Bank. The bank provided the relevant security documentation to Arik Air and subsequently to AMCON, and the documentation was verified as genuine. Accordingly, Arik Air and AMCON did not object to Access Bank’s exercise of its security rights, including the sale of the aircraft.

— Simon TumbaPR Consultant to Arik Air in Receivership, confirming the sale and AMCON's justification.

Simon Tumba, the PR Consultant for Arik Air in Receivership, confirmed the sale, providing documentation for the aircraft, including its registration details and manufacturing year. He indicated that the aircraft was registered under the Nigerian Civil Aviation Authority and was subject to a charge in favor of Intercontinental Bank Plc, which later became Access Bank.

However, the founder and shareholders of Arik Air have strongly contested the sale. They claim that Access Bank had guaranteed a loan from the US Exim bank, and this loan was fully serviced before AMCON took over the airline in February 2017. The shareholders have accused the receiver manager of not providing verified inventory or statutory statements of affairs at the commencement of the receivership.

mindful that he did not obtain a verified inventory, a statutory statements of affairs at the commencement of the receivership, offered to assist to set the records straight and assist him to make informed decision in a reply of 31 December by demanding the supporting documents of that claim which he did not supply with his letter.

— Godwin AidelojeFrom the media office of Arik Air shareholders, explaining their interaction with the receiver manager regarding the alleged indebtedness.

In a statement, the shareholders expressed shock at the dismantling of the aircraft, especially after requesting supporting documents for the alleged indebtedness from the receiver manager. They argue that the receiver manager issued a no-objection authority for the destruction of a valuable asset without providing the necessary information to help preserve the company's assets.

It’s shocking that he neither supplied the information that the shareholders requested that could help in the preservation of the assets of the company, while he had already/reportedly issued a no objection authority to the destruction of a new generation aircraft that should earn re

— Godwin AidelojeFrom the media office of Arik Air shareholders, expressing dismay over the dismantling of the aircraft.
About this summary

Originally published by ThisDay in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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