AMCON takes over oil firm over N29b debt, appoints manager

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Ahmed Kuru, MD AMCON

The Asset Management Corporation of Nigeria (AMCON) on Monday took over Cedar Oil & Gas Exploration and Production Limited over N29 billion bad debt and appointed Receiver/Manager to oversee the firm.

Hon. Justice C.J. Aneke of the Federal High Court Lagos Division granted an injunction against Cedar Oil & Gas Exploration and Production Limited on the application of AMCON over the debt.

AMCON has subsequently taken possession of all the assets of Cedar Oil & Gas Exploration and Production Limited promoted by Olajide Omokore and others as ordered by the Court through Godwin Nwekoyo, the Receiver/Manager who also received protective orders from the court.

Managing Director/Chief Executive Officer of AMCON, Ahmed Kuru said the corporation would continue to sustain its high tempo of recoveries, by strategically focusing more on enforcements especially since AMCON’s top obligors have resorted to hiding under all manner of technicalities of the law to delay the repayment of their debt to the detriment of the Nigerian economy.

The assets, which are now under AMCON are Block A, No. 46 Gerrard Road, Ikoyi Lagos State, comprising of 26 flats; Plot 1236, River Niger Street, off River Benue Street, Maitama, Federal Capital Territory, Abuja; as well as Marion Apartment, Block 8, No. 4 & 5, Onikoyi Estate, Banana Island, Lagos State, consisting of 43 units of apartments. AMCON is also in possession of No. 33A, Cooper Road, Ikoyi, Lagos State; No. 8, Gerrard Road, Ikoyi, Lagos State as well as Manson Apartments, No. 6, Gerrard Road, Lagos State comprising of 60 units of three-bedroom apartments.

Hon. Justice Aneke gave the orders following the failure of Cedar Oil & Gas Exploration and Production Limited as well as its directors, Olajide Omokore; Alhaji Isiaka Mohammed, Joseph Bazuaye, Engr. Silas Ode and others to pay AMCON their admitted sum of over N15 billion out of the total outstanding indebtedness of N29 billion owed to the recovery agency of the Federal Republic of Nigeria.

Head, Corporate Communications, AMCON, Jude Nwauzor confirmed the takeover adding that the corporation just obeyed the court order.

“We saw it coming because the said debt is long overdue. You can see how these top AMCON obligors are taking all Nigerians for a ride. Even when they admitted repaying over N15 billion owed AMCON, they still did not honour their own agreement, which they did not make under duress,” he said.

“I want you to understand that before we get to this stage with any obligor, we must have patiently tried to resolve the matter without going to court. Anytime we end up taking over assets such as in the case of Cedar Oil & Gas Exploration and Production Limited as well as its directors, Olajide Omokore and others, it means all efforts by AMCON to get the obligor to amicably repay the indebtedness have proved abortive”.

Continuing, he said: “If you have exhausted all avenues of peaceful resolution, there is no other option available to the Corporation than to commence enforcement action against the firm and Mr Olajide Omokore the promoter of Cedar Oil & Gas Exploration and Production Limited as well as the other directors as ordered by the Court and as provided under Section 49-52 of the AMCON Act.”

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