N940 million debt: AMCON takes over two firms

The Asset Management Corporation of Nigeria (AMCON), has taken over assets belonging to Northrich Technologies Limited, and its promoters, over a N500million debt, just as it did with Jabfal Enterprises Limited for over N440million.

Presiding over the case instituted against Northrich Technologies by AMCON, in Suit No FHC/ABJ/CS/258/14, at the Federal High Court, Abuja, Hon. Justice A.I. Chikere ordered the Corporation and its appointed law firm, Mildred and Patriarch Attorneys, to take over the assets of the company.

Similarly, following the order of Honourable Justice C.J. Aneke of the Federal High Court, Lagos Division, AMCON appropriated the assets belonging to Joshua Abiodun Faleye, the chief promoter of Jabfal Enterprises.

Among the Northrich Technologies assets taken over by AMCON are 11 hectares of land, located at Plot 5, Zaria Road, Damba Gusau Local Government Area, Zamfara State with C of O number GS/G/1443, and a residential plot on Shinkafi Road Sokoto State, as well as all the equipment that were purchased with the facility.

The court also granted an order to freeze each and every account belonging to the company and its promoters, Mukhtar Aliyu Shinkafi, and Ahmad Aliyu Shinkafi among other directors.

The case of Northrich Technologies Limited, and its promoters had been interminable because the loan was purchased by AMCON during the first phase of Eligible Bank Assets (EBA) from Intercontinental Bank (now Access Bank) in 2011.

According to the Corporation, Northrich Technologies and the Shinkafis had been offered various repayment proposals since April 2012 but were unable to meet any of the terms, which show a clear inability to settle its indebtedness, giving it no other option than to seek justice in court.

In total compliance with the order, and having met all other due processes for effective enforcement, AMCON before the weekend took effective possession of two properties through its Receiver – Benson Reeds Legal Practitioners. The assets the government agency took over include properties situated at Plot 9, Block XIV Okuta Elerinla Residential Estate, Akure, Ondo State and Plot 3, Block IV, State Residential Layout, Okuta Elerinda, Akure, Ondo State.

The case between AMCON and Jabfal Enterprises Limited and its promoter have been a protracted litigation issue since the loan was purchased during the first and second phases of Eligible Bank Assets (EBAs) purchase from Unity Bank Plc, and Intercontinental Bank (now Access Bank Plc.) almost 10 years ago.

Since then, AMCON 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, Jabfal Enterprises have remained recalcitrant and unwilling to repay the huge debt to the Corporation.

Confirming that AMCON had enforced on the assets in line with the order of the court, Head, Corporate Communications, AMCON, Jude Nwauzor, said: “Yes, we enforced on the properties as ordered by the court.”

Providing more insight into the case, Nwauzor said in securing the credit facilities (the term loan and overdraft), the respondents had pledged as securities the properties belonging to Joshua Abiodun Faleye and executed deeds of legal mortgages in that regard.

According to the statement, sometime in 2010, ANCON by virtue of a loan purchase and limited service agreement effective December 31, 2010, was assigned the absolute rights, title, interest, benefits arising and connected with the term loan and overdraft due for the debtors to pay having become due and payable and they (Jabfal and its promoters) failed, neglected and refused to pay the debt to AMCON.

AMCON said despite their failure to pay the outstanding balance on the term loan and overdraft of N290, 255, 896.77 and N126,485,340.27 respectively, the debtors were still in possession of the properties used as collateral for the credit facilities until Hon. Justice Aneke’s order, which has made it possible for AMCON to take over the assets.