AMCON takes over Gateway Portland Cement

Following an injunction against Gateway Portland Cement Limited (GPCL) and Olumuyiwa Odegbami on the application of Asset Management Corporation of Nigeria (AMCON) by Hon. Justice Mohammed, at the Federal High Court, Abeokuta division, AMCON’s Receiver, Charles Adeogun-Phillips has formally taken possession of GPCL factories and facilities located in Abeokuta and Mowe areas of Ogun State over a debt profile of nearly N3billion, which has been a subject of litigation for a while.

In its ruling, the court restrained the Gateway Portland Cement Limited and its agents from moving into the firm or withdrawing money from or with any bank or financial institutions that hitherto does business with the cement company pending the hearing and determination of the suit to be filed by the applicants for recovery of its outstanding debts.

It also restrains GPCL, and the promoters by themselves, their agents, servants and, or their privies from interfering with, obstructing or frustrating the Receiver appointed by AMCON in performing his duties and directed deliver to the Receiver all the charged assets of the company in their possession forthwith.

To ensure compliance, Mohammed directed the Inspector General of Police, the Assistant Inspectors General of Police, Commissioners of Police in charge of any location where the pledged assets of Gateway Portland Cement Limited might be found to assist the bailiff and the AMCON Receiver, Adeogun-Phillips in the enforcement of the order.

AMCON under the current management team led by its MD/CEO, Ahmed Kuru, has continually maintained that there would be no rest for recalcitrant debtors of the corporation like in the case of the promoters of GPCL, which he said remains the only way AMCON mandate could be realised within the timeframe of the assignment and in the interest of the country’s economy.

Kuru had recently stated that despite efforts of the corporation to resolve the huge debts in its portfolio, it identified 350 obligors’ accounts that represent about 80 percent of AMCON’s current exposure of N2.5 trillion as at December 31, 2016. He said it was based on this that AMCON repositioned its debt recovery approach to strengthen legal and credit restructuring units- to collaborate on the aforementioned 350 accounts, which he termed “defaulters”; enhance the restructuring and turnaround team; and engage in asset tracing to enhance recoveries.