The Asset Management Corporation of Nigeria (AMCON), on Monday announced the take of assets belonging to Glano Nigeria Limited on Thursday, April 6, 2023, over a N2.4bn indebtedness on the order of Justice Ibrahim Buba of the Federal High Court Lagos Division.
A statement by the corporation established to recover bad debt on behalf of the federal government of Nigeria, said the seizure brings to end the court battle with Glano Nigeria Limited and its promoters since 2016.
Having looked at the case in its entirety, especially regarding efforts AMCON made to resolve the loan amicably without cooperation from the obligor, the court finally ordered the takeover.
Properties of Glano Nigeria Limited affected included No. 22 Woji Road Port Harcourt, the Rivers State Capital, which had been under the management of Sterling Law Alliance since 2019.
The court also ordered AMCON to take all necessary steps required to realise 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 forms of bonds of security for money, with a view to realising the huge outstanding debt.
The case of Glano Nigeria Limited and its promoter has been a protracted because the loan was purchased during the third phase of Eligible Bank Assets (EBA) from United Bank for Africa Plc dating back to 2013.
Since then AMCON said it has offered the obligor a good measure of olive branches, and explored all avenues to resolve the matter amicably, but the obligor and his company, Glano Nigeria Limited remained recalcitrant and unwilling to repay the debt.
In the statement by Jude Nwauzor, Head Corporate Communications Department, AMCON said the enforcement was carried out seamlessly, especially as the court had also directed the Nigerian Police Force, officials of the court, and other security agencies to assist in securing the assets.
Recall that AMCON was created to be a key stabilizing and re-vitalizing tool aimed at reviving the financial system by efficiently resolving the non-performing loan assets of the banks in the Nigerian economy. The Corporation has done remarkably well in stabilizing the financial sector but is now faced with the hardcore of recovering its huge investments in the sector.