MRS slams AMCON’s N81b debt claim as frivolous

The aggressive debt recovery drive of the Asset Management Corporation of Nigeria (AMCON) will be meeting stiff resistance soon as allegations of harassment and frivolous claims are building up against the agency.

A major downstream petroleum sector player- MRS Holdings Limited, yesterday, not only refuted AMCON’s debt claim on it, but described the act as a recent trajectory of the company in slamming frivolous recovery cases against many companies on similar issues, which it has consistently lost.

Specifically, MRS said the debt AMCON is claiming has already been fully settled according to the terms entered into as a Judgment of Court on 29 June 2015, in Suit No FHC/L/CS/1365/2015.

AMCON, on Monday, said it has initiated steps to wind-up MRS Holdings Limited over its inability to pay a whooping N81billion debt.According to AMCON, it commenced the winding-up proceeding against the oil marketing company at the Federal High Court Lagos, after all entreaties to pay up failed.

The company said it prayed the court in suit No. FHC/L/CP/923/2016 to allow it force the insolvent MRS into compulsory liquidation.Already, MRS is exploring legal advice to clear its good name and bring necessary actions to seek damages for the embarrassment and damage caused the company’s reputation and goodwill by AMCON’s publication and action.

“MRS challenges in the strongest possible terms the false claim by AMCON that MRS is indebted to AMCON in the sum of N81 Billion or any sum at all. “The correct position is that MRS obtained a loan from a consortium of banks in Nigeria for a viable project. AMCON took over the loans. However it became clear to AMCON that MRS was paying down on the loan and agreed to restructure the loan on agreed terms of N74 Billion.

“The said debt has since been fully settled. The terms of settlement was entered as Judgment of Court on 29 June 2015, in Suit No FHC/L/CS/1365/2015.
“MRS is shocked that in spite of having fully settled the debt, AMCON has decided to relitigate an already concluded matter. MRS Holdings Limited understands AMCON’s statutory function to recover debts, but by no stretch can this mean harassment of companies, the company said in a statement to The Guardian.

The statement noted that MRS has no problem with the debt recovery, but said it does not give AMCON a licence to embarrass and harass companies. “It is not a crime to obtain loans for viable projects. Execution of viable projects leads to job creation and growth of the economy. However, when companies that obtain loans for legitimate businesses are being harassed and embarrassed in the name of aggressive debt recovery, it signals danger for growth of the economy, the statement added.

MRS therefore, wishes to assure all its customers and business associates that the newspaper reports (The Guardian not included) will not affect the company and its subsidiaries’ high quality services that it has always been known for and would seek redress for the damages caused by the publication.

Meanwhile, AMCON pointed out that it entered into an agreement with the oil company in February 2014 to restructure the debt, which then stood at over N74 billion.

In the agreement executed by the oil company, it agreed among other conditions that in the event of default, all concessions granted under the terms of settlement shall be revoked and the facility called in at the discretion of AMCON.

AMCON also claimed that the company also signed a default indemnity, which stated that if it fails to pay any sum (of principal, interest or otherwise) due or to become due as agreed, it shall pay additional interest at a default rate determined by AMCON on the unpaid sum from the date when such payment was due up to the default payment.