No Plans To Close Textile Firm Over N1bn Debt, AMCON Assures

No Plans To Close Textile Firm Over N1bn Debt, AMCON Assures

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Post Views: 147 The Asset Management Corporation of Nigeria (AMCON), said on Friday, February 1, 2019, that it has no plan to close the Nigerian Braid...

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The Asset Management Corporation of Nigeria (AMCON), said on Friday, February 1, 2019, that it has no plan to close the Nigerian Braiding Manufacturers Limited (NBML), a Kano State-based textile company, it recently taken over due to its un-serviced debt obligations to the nation’s banks.
NBML was among companies whose debt to banks was purchased by AMCON in the wake of the Nigerian banking crisis about a decade ago, to enable the financial institutions concentrate on their core function of banking, unencumbered by such toxic assets, while stabilizing the economy.
A statement by the corporation put outstanding debt obligation of the textile company at over N1.0bn, “despite numerous overtures by AMCON for amicable resolution of the debt to which the Company and its promoters have remained nonchalant over the years, leaving the Corporation with no choice than to seek Justice in Court.”
The corporation, according to Jude Nwuzor, its spokesman, said the clarification became necessary in view of recent media reports, noting that in line with provisions of its enabling Act, 2010 (as amended), “the corporation approached the Court and secured an Order enabling it to take possession of the company through its Receiver Manager, Dr. Yakubu Fobur under whose supervision the Company is billed to resume full production soon.
The corporation affirmed commitment “to ensuring that the company remains in operation under the management of the Receiver Manager and his team of experts who are expected to work closely with the Promoters of the Company to ensure that NBML returns to profitability within a short period.
“This strategy would guarantee security of the large number of direct and indirect jobs provided by the Company, while efforts continue towards a definite resolution option,” Nwuzor added.

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