Arik Air’s shareholders denies AMCON’s allegations on airline’s debt

Shareholders of Arik Air have denied most of the reports by the Asset Management Corporation of Nigeria (AMCON), which claimed that the airline owed the corporation N455 billion.

In a statement issued on Sunday by Godwin Aideloje, the shareholders described the debt claims as ‘fictitious’, adding that the allegation is defeated by AMCON’s claim in its Suit No. FHC/L/CS/175/17 with which it took Arik Air into receivership and gained full control and management of operations, assets and liabilities of the airline.

This reaction came two days after AMCON stated that the option to liquidate Arik Air is still on the table following several efforts it has made to revive the airline which was hugely indebted.

Speaking during a press conference with aviation reporters in Lagos, Jude Nwauzor, Head of, the Corporate Communications Department, AMCON, said the AMCON Act, in Section 6 empowers the corporation to purchase, manage, and dispose of EBAs, which include Arik.

Nwauzor also noted that section 48 empowers the corporation to appoint a Receiver or Receiver Manager to take, manage, and dispose of assets of a debtor company like Arik.

He said considering the powers that AMCON possesses according to the law, liquidating Arik Air remains an option for it.

He said Arik was managed in its bad state and already insolvent, without any kobo from anyone by the corporation, adding that the Corporation met trade creditors to Arik debt, debt to its technical partners, and debt to other aviation experts all over the world.

“Managing these debts was challenging for the corporation, which still can liquidate Arik. But here we are still managing Arik, which was already insolvent and still insolvent even as we discuss,” Nwauzor said.

But in a statement by Aideloje said “the  inventory of Arik’s assets, which AMCON shows as evidence of the airline’s insolvency, is nothing more than a poorly crafted attempt to deflect attention from their inability to run the airline effectively.”

They equally described as false, AMCON’s claim that Arik Air was insolvent and mismanaged before the receivership, according to a purported PwC report.

The shareholders stated that the 2014 audited financial reports of the airline were completed and duly signed by the Arik management, while the 2015 management accounts were concluded and forwarded to PwC for auditing in 2016, before AMCON forcefully took over Arik on February 9, 2017, and interrupted the process.

The shareholders recalled that the Federal High Court judgment of March 31, 2023, had ordered AMCON and its Receiver Manager to file audited financial reports with the Corporate Affairs Commission (CAC) for the period of receivership to the date of judgment within 14 days, which was not obeyed by AMCON.

The shareholders described AMCON’s claim that it took over Arik Air under government mandate as a gross misrepresentation of the federal government as being in the business of arbitrary takeover of private businesses with a stroke of pen, insisting that the claim was a disservice to the government and people of Nigeria by AMCON.

“Contrary to Nwauzor’s claim, neither Ojemaie Farms nor Ojemaie Investments Limited is indebted to AMCON. This issue has been settled in a court affirmed settlement signed by the AMCON management and Ojemaie Farms and Ojemaie Investment in Suit No. FHC/L/CS 1828/2015. What a pity that Mr. Nwauzor made such false statements on issues settled by law courts over 7 years ago.

“In the case of Rockson Engineering Limited, which is before the Federal High Court in Suit No FHC/L/CS 1129/2019 for determination. AMCON has a claim of N63B against Rockson Engineering Nigeria arising from over 3 years delayed payments for power projects by the Federal Government,” Nwauzor said.