The Asset Management Corporation of Nigeria has seized assets belonging to Glano Nigeria Limited, which was in debt for over N2 billion.
The takeover was disclosed on Monday by the director of AMCON’s corporate communications, Jude Nwauzor, in a statement he made.
He disclosed that the takeover was carried out in accordance with Justice I. N. Buba’s Federal High Court Lagos Division decision.
He said that as instructed by the court, AMCON successfully took possession of Glano’s property in Port Harcourt on April 6.
The court ordered AMCON to work with other security agencies and the Nigerian police force to secure the assets.
He also pointed out that the court had authorized the takeover following a review of AMCON’s efforts to settle the loan peacefully.
“In accordance with the enforcement order, AMCON took effective possession of Glano Nigeria Limited’s property at 22 Woji Road in Port Harcourt, the capital of Rivers State, on Thursday, April 6, 2023. Sterling Law Alliance has been in charge of this property’s management since 2019.
“The court ordered AMCON to take all necessary measures to realize the assets of the obligor within the judicial division, by seizing and taking any money bank notes, cheques, bills of exchange, promissory note, and all types of bonds of security for money, with a view to realizing the enormous outstanding debt. In addition to granting AMCON possession of the property located at no. 22 Woji Road Port Harcourt.
“Due to the fact that the loan was acquired from United Bank for Africa Plc during the third phase of eligible bank assets back in 2013, the matter involving Glano Nigeria Limited and its promoter has been a protracted issue.
“Since then, AMCON has extended a fair number of olive branches to the debtor and looked into all possible diplomatic solutions, but the debtor and his company, Glano Nigeria Limited, have remained obstinate and reluctant to pay the enormous debt owed to the corporation.”
The Asset Management Corporation of Nigeria Act, 2010 was enacted on July 19, 2010, by former president Goodluck Ebele Jonathan.
According to Section 1 of the Act, AMCON was created to effectively address the issues related to the non-performing loan assets of Nigerian banks.
The task of purchasing non-performing loans from banks and other qualified financial institutions falls to AMCON.
The AMCON Amendment Bill, which further amended the 2010 Act, was signed into law by President Muhammadu Buhari in 2019.
The amendment increased the powers of AMCON in the enforcement of debt recovery.