AMCON takes over debtor hospitality firm

Asset Management Corporation of Nigeria (AMCON), at the weekend, took over the assets of Mustasons Guest House Limited, as well as obtained an order, which froze all identifiable and/or traceable accounts both in Nigeria and abroad.

The move became necessary, according to AMCON, as the debt, estimated at nearly N500 million, was long due and all efforts to resolve the matter without going to court and reaching this stage were not successful.

Justice Babs O. Kuewumi of the Federal High Court Lagos Division granted the injunction against Mustasons Guest House Limited on Ajose Adeogun Street in Victoria Island, Lagos on the application of AMCON.

Justice Kuewumi, the presiding judge while granting the order on the application of Mr. Idowu Ibrahim, counsel to AMCON, restrained Mustasons Guest House Limited and Alhaji Wushishi, “their directors, staff, management, employers, agents, officers, privies or any other person or group of persons whatsoever under the respondents’ authority or any other authority (however derived or sourced) from tampering with, selling, leasing, removing from the jurisdiction of the court or dealing in whatsoever manner with the respondents’ assets/properties situate at Mustasons Guest House Plot 91, Ajose Adeogun Street, Victoria Island Lagos and Plot 1111B, Amichi Close, Victoria Island respectively owned by the respondents.”

Meanwhile, the court also granted AMCON the powers to take possession of the assets/properties of Mustasons Guest House and freezing accounts, but mandated all the banks and financial institutions to furnish AMCON the details of the respondent’s accounts domiciled with them within seven days of the service of the court order.

The Head, Corporate Communications, AMCON, Jude Nwauzor, said: “Having exhausted all avenues of peaceful resolution, there was no other option available to us than to commence enforcement action against Mustasons Guest House Limited and its promoter as provided under Section 49-52 of the AMCON Act.”

Earlier in the year, the Managing Director/Chief Executive Officer of AMCON, Ahmed Kuru, said the Corporation would sustain its tempo in recoveries, which began last year by strategically focusing on value enhanced exits of its portfolios.

The strategy, he said, encompasses negotiations and resolution of loans through cash recoveries, asset forfeitures through negotiation or enforcement; capital restructuring for short to mid-term exits, as well as joint venture arrangements for asset operations and land development.

The Head, Corporate Communications, AMCON, Jude Nwauzor, said: “Having exhausted all avenues of peaceful resolution, there was no other option available to us than to commence enforcement action against Mustasons Guest House Limited and its promoter as provided under Section 49-52 of the AMCON Act.”

Earlier in the year, the Managing Director/Chief Executive Officer of AMCON, Ahmed Kuru, said the corporation would sustain its tempo in recoveries, which began last year by strategically focusing on value enhanced exits of its portfolios.

The strategy, he said, encompasses negotiations and resolution of loans through cash recoveries, asset forfeitures through negotiation or enforcement; capital restructuring for short to mid-term exits, as well as joint venture arrangements for asset operations and land development.