The Asset Management Corporation of Nigeria (AMCON) has appointed Robert Ohuoba, Receiver of Bao Yao Futurlex Iron & Steel Company Limited, Abuja as well as Bao Yao Huan Jian Iron & Steel Company Limited, Calabar.
This was based on the order of the Federal High Court, FCT Abuja, presided over by Justice Binta Fatima Nyako, following an outstanding N3.6bn outstanding debt owed by both companies promoted by Shen Yaozhang and General Idris Garba (retd).
The order also froze all accounts of both companies in any financial institution in the name or belonging to the defendants and all financial institutions served with the order.
AMCON was also granted possessory order over the business as well as all fixed and floating assets of both companies wherever they may be found within the jurisdiction of the Federal High Court.
These were listed as the piece of land consisting of buildings/factory and situated at Esuk Utan Village, Calabar, Cross River State, more particularly described as Plot A23 – A30, Calabar Export Processing Zone; all those chattels consisting of five Oil Tank Barges and seven Tug Boats etc.; as well as all piece of land consisting of an acre and situated at Kaduna in the Kaduna Local Government Area, more particularly described as Plot No. 13, Idoma Close, amongst others assets.
He also received protective orders from the court has taken possession of Yao Futurlux, Abuja.
The Court also directed the Inspector-General of Police and the Commissioner of Police, in all the state of the federation to assist and protect the Bailiffs of the Federal High Court and the Receiver, Ohuoba to carry out the takeover.
According to Jude Nwauzor, Head, Corporate Communications, AMCON, while confirming the development, “we saw it coming, because the said debt is long overdue. Like we have always said, going to court with obligors is usually the last resort for us as a corporation. Whenever you see us take over company as is the case in this instance, it means we must have patiently tried to resolve the matter without going to court.
“Taking over the firm as directed by the court is an indication that all efforts by AMCON to get the obligor to amicably repay the indebtedness have proved abortive. If you have exhausted all avenues of peaceful resolution, there is no other option available to the AMCON than to commence enforcement action against Bao Yao Futurlex Iron & Steel Company Limited as well as Bao Yao Huan Jian Iron & Steel Company Limited as directed, which is also provided under Section 49-52 of the AMCON Act.”
Recall that Vice President Yemi Osinbajo, Dr. Muiz Banire, as well as Ahmed Lawal Kuru, chairman and managing director of AMCON have repeatedly reiterated the corporation’s desire to collaborate with relevant government agencies to intensify its chase on recalcitrant obligors over N5tr.