{"id":24777,"date":"2018-07-02T12:48:04","date_gmt":"2018-07-02T11:48:04","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=24777"},"modified":"2018-07-02T12:48:04","modified_gmt":"2018-07-02T11:48:04","slug":"n5-4tn-debt-amcon-goes-tough-to-seize-assets-of-debtors","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/n5-4tn-debt-amcon-goes-tough-to-seize-assets-of-debtors\/","title":{"rendered":"N5.4tn Debt: AMCON Goes Tough, to Seize Assets of Debtors"},"content":{"rendered":"

The Asset Management Corporation of Nigeria (AMCON) has said there will be no more room for negotiation with its debtors, declaring that it\u00a0\u00a0<\/span>is set for a new stage.<\/p>\n

This new stage, according to AMCON, would involve complete take-over of the assets of its chronic debtors.<\/span><\/p>\n

The Managing Director and Chief Executive Officer of AMCON, Mr. Ahmed Kuru, who disclosed in an interview with the\u00a0News Agency of Nigeria (NAN)<\/i>\u00a0in Abuja yesterday, said the N5.4 trillion debt owed the corporation had lingered for too long.<\/span><\/p>\n

He also disclosed that in cases where the registered assets of a company that is indebted to the corporation are not enough to clear their obligation, AMCON will go after the directors and their private companies.<\/span><\/p>\n

Kuru said AMCON had gotten tired of obligors (debtors), coming to its office to tell lies about planing to embark on staggered payments which they end up never complying with.<\/span><\/p>\n

He said part of the N5.4 trillion had been with the banks for five years before AMCON bought over the bad loans, adding that after seven years of the companies\u2019 operations, the obligors were yet to pay.<\/span><\/p>\n

\u201cResolutions through staggered plans have never worked. Let us not forget that before those loans were transferred to AMCON, they have been with the banks for over five years.<\/span><\/p>\n

\u201cNow, AMCON is almost seven years, so the facility has been running badly for 12 years. It is not easy to recover those kinds of facilities.<\/span><\/p>\n

\u201cSo, now we have changed our strategy from sitting down and drinking tea and the obligors telling us lies and we pretend that we don\u2019t know you are telling us lies.<\/span><\/p>\n

\u201cThere is no more time for lies because we have a sunset period.\u00a0\u00a0<\/span>So, now our focus is on recovery.\u00a0\u00a0<\/span>We do not want to hear anything; you cannot come and tell me you are going to pay me in the next six years, I do not have that time.<\/span><\/p>\n

\u201cIf you cannot pay me the money now then give me my assets because the assets belong to AMCON so that we can sell it.\u201d<\/span><\/p>\n

He said as part of the new strategy of AMCON, directors of companies would now be sought after so that they would be forced to take part in repaying the loans.<\/span><\/p>\n

\u201cWe are training our people more to see that they become more efficient.<\/span><\/p>\n

\u201cMost fundamentally we have changed our strategy. Before now, our strategy had been only resolution: you come, you give us a payment plan and we respect it.<\/span><\/p>

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\u201cBut we have realised that more than 80 per cent of AMCON\u2019s recoveries are as a result of either forfeiture or taking over of businesses or outright cash payment.<\/span><\/p>\n

\u201cMy law allows me to not only go after the assets that are served as collateral but I can also go after the directors of companies. I can go after the assets that have not been served as collateral.<\/span><\/p>\n

\u201cThis is where we are now heading to because the law had anticipated this situation that we are now in,\u201d he said.<\/span><\/p>\n

Speaking further on the way forward for AMCON, Kuru said there was need for some sections of the law to be amended, adding that the company was working with the National Assembly to amend relevant laws.<\/span><\/p>\n

For him, the National Assembly had been very good so far and had been working hard to close the gaps.<\/span><\/p>\n

THISDAY had reported that the total amount of recovered debt by AMCON as at the end of 2017 was N740 billion.<\/span><\/p>\n

Kuru had pointed out that the corporation was in possession of a lot of real estate and some other forms of assets.<\/span><\/p>\n

He said: \u201cWe have disposed some financial assets, which also included three banks. We are in the process of divesting our int<\/span>erest in Peugeot Automobile Nigeria (PAN).<\/span><\/p>\n

\u201cThis is in a<\/span>ddition to quite a number of small businesses that we had intervened and disposed.\u201d<\/span><\/p>\n

He put the value of AMCON\u2019s intervention in the agriculture sector at about N1.7 trillion.<\/span><\/p>\n

\u201cThe structure of AMCON at conception was that, there was the assumpti<\/span>on that those loans that were purchased would be restructured and liquidity provided so that new life would be given to some of those businesses.<\/span><\/p>\n

\u201cUnfortunately, a substantial part of businesses that were restructured and funds injected in the past, the performance level is less than 10 per cent. \u201cLike I said earlier, there was the assumption that if you transfer the loans from the banks to an asset management corporation, you will be able to restructure.<\/span><\/p>\n

\u201cBut again, we forgot that some of those facilities were bad in the books of some of those financial institutions,\u201d he had explained.<\/span><\/p>\n

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The Asset Management Corporation of Nigeria (AMCON) has said there will be no more room for negotiation with its debtors, declaring that it\u00a0\u00a0is set for a new stage. This new stage, according to AMCON, would involve complete take-over of the assets of its chronic debtors. The Managing Director and Chief Executive Officer of AMCON, Mr. …<\/p>\n","protected":false},"author":6,"featured_media":24778,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[1277],"coauthors":[2391],"class_list":["post-24777","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-news","tag-amcon"],"yoast_head":"\nN5.4tn Debt: AMCON Goes Tough, to Seize Assets of Debtors - National Wire<\/title>\n<meta name=\"description\" content=\"The Asset Management Corporation of Nigeria (AMCON) has said there will be no more room for negotiation with its debtors, declaring that it\u00a0\u00a0is set for a new stage. 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