AMCON, Arik shareholders renew fight over N227.6bn debt

The Assets Management Corporation of Nigeria (AMCON) is considering the option of liquidating Arik Air over indebtedness of N227,637,469,394.34 billion. This is in addition to other debts owned by the airline’s founder, Sir Johnson Arumemi-Ikhide, who is also the promoter of Rockson Nigeria Limited (a power infrastructure company), Ojeimai Farms Limited, and Ojeimai Investment Limited. […]

The Assets Management Corporation of Nigeria (AMCON) is considering the option of liquidating Arik Air over indebtedness of N227,637,469,394.34 billion.

This is in addition to other debts owned by the airline’s founder, Sir Johnson Arumemi-Ikhide, who is also the promoter of Rockson Nigeria Limited (a power infrastructure company), Ojeimai Farms Limited, and Ojeimai Investment Limited.

AMCON’s Head of Corporate Communications, Mr Jude Nwafor explained that Rockson Engineering owes N163,502,837, N397.75 billion and Ojemai Farms owes N14,031,457,980.71 billion, adding that the companies’ debts were transferred by various banks to AMCON due to their non-performance, with a total indebtedness of N455,171,764,772.80 billion as of December 31, 2024.

He spoke with newsmen in Lagos where he clarified reports surrounding its management of Arik Air which it took over in February 2017 and is still under receivership.

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Both AMCON and Arik Air’s shareholders have engaged in legal fireworks since the takeover with several court cases ongoing.

The AMCON spokesman said an audit report by PWC confirmed that Arik had been technically insolvent since 2014, with its liabilities exceeding its assets throughout 2015 and 2016, up until the commencement of the receivership in 2017.

“As of December 2016, Arik’s negative shareholder capital stood at N139 billion, nearly equivalent to its debt to AMCON,” he stated.

Nwafor further clarified that 21 Arik Air’s planes were not available for service when AMCON took over while listing the countries where the aircraft were kept, adding that 16 aircraft were under the control of Arik Air as of August 2024.

The aircraft not available, according to a document made available to our correspondent, included 5N-MJA, B737-300 (abandoned in Norwich, UK);  5N-MJB, B737-300 (abandoned in Southend, UK) 5N-MJC, B737-700 (extensively cannibalized in Lagos); 5N-MJD, B737-700 (extensively cannibalized in Lagos); 5N-MJG, B737-700 (required spare parts to return to service); 5N-MJI, B737-700 (abandoned in Malta);  5N-MJO, B737-800 (one engine was unserviceable due to excessive oil leak);  5N-MJP, B737-800 (abandoned in Johannesburg, South Africa); 5N-MJQ, B737-800 (abandoned in Malta) and 5N-BKU, Q400 (required spare parts to return to service).

Others were 5N-BKV, Q400 (extensively cannibalized in Lagos);  5N-BKW, Q400 (required spare parts to return to service); 5N-JEA, CRJ900 (required spare parts to return to service);  5N-JEB, CRJ900 (required spare parts to return to service); 5N-JEC, CRJ900 (extensively cannibalized in Lagos);  5N-JIC, A330-200 (unserviceable in Perpignan, France); 5N-JID, A330-200 (unserviceable in Lagos);  5N-JMA, HS800XP (abandoned in Chester, UK);  5N-JMB, HS800XP (unserviceable in Lagos); CS-TFW, A340-500 (extensively cannibalized in Lagos) and CS-TFX, A340-500 (seized and operated by HiFly in Portugal).

But the shareholders of Arik Air in a response to AMCON through their media officer, Godwin Aideloje faulted AMCON’s debt claim.

They said, “AMCON’s narrative conveniently ignores the fact that Arik Air Limited did not default in its repayment obligations but AMCON created a receivership to take over the airline which neither served the interest of the airline nor the country including the highly trained professional staff whose opportunity to soar in the professions have been destroyed by AMCON receivership.”

According to the shareholders, AMCON’s claim that Arik Air was insolvent was “A deliberate attempt to obfuscate the facts.”

They explained that the 2014 audited financial reports were completed and duly signed by the Arik management, while the 2015 management accounts were concluded and forwarded to PwC by the management for auditing sometime in 2016. Please recall that AMCON forcefully took over Arik on 9 February 2017 and interrupted the process.”