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AMCON set to sell Air Nigeria assets

By on January 10, 2015

Three Boeing and Embraer planes as well as other assets belonging to Air Nigeria will soon be sold by the Asset Management Corporation of Nigeria, it has been learnt.

The process that will lead to the sale of the assets has been commenced by the bad debt manager, our correspondent gathered.

The assets, which were acquired by AMCON several months ago, will be sold to recover the debts owed banks, but which were taken over by the corporation.

The Managing Director, AMCON, Mr. Mustafa Chike-Obi, who confirmed that the corporation would sell the assets, was, however, silent on the transaction process and its stages.

Chike-Obi, who spoke to our correspondent in an exclusive interview on Wednesday, disclosed that Air Nigeria belonged to UBA Capital, an arm of the United Bank of Africa Group.

“AMCON did not buy Air Nigeria. Air Nigeria belongs to UBA Capital, but AMCON has bought the assets. As much as we can, we will sell the assets to recover our money,” he said.

Apart from Air Nigeria, Chike-Obi said the corporation would do everything possible to recover the debts owed by other domestic airlines, adding that nothing would be left to chance.

AMCON has converted some of Aerocontractors Airlines’ debts to equity but Chike-Obi told our correspondent that the carrier still owed the corporation some money.

He said, “Airlines are not different from other companies and individuals owing us. We will collect our money from them. There are still some debts with Aero.

“We will collect all the money in a way that is supportive of the companies. This is what we are doing, not just for the airlines but for other companies.”

Air Nigeria, originally Virgin Nigeria Airways and later Nigerian Eagle Airlines, used to be the national flag carrier.

On September 28, 2004, the Federal Government and the United Kingdom-based Virgin Group signed an agreement to establish a new national carrier for the country to be called Virgin Nigeria Airways. Local institutional investors owned 51 per cent of the company, while Virgin Atlantic Airways owned the balance.

On June 2, 2010, following the acquisition of a majority share in the airline, a businessman, Mr. Jimoh Ibrahim, announced that it had undergone a further name change to Air Nigeria Development Limited, but branded as Air Nigeria.

On September 6, 2012, Air Nigeria announced that the management had fired its workers for disloyalty and that it would suspend all its local, regional and international operations.

Air Nigeria stopped operations on September 10, 2012.

A report last year quoting a Ministry of Aviation audit report said five airlines, including Air Nigeria, owed AMCON N190bn.

The spokesman for AMCON, Mr. Kayode Lambo, however, denied that five domestic airlines owed the corporation N190bn.

According to the ministry’s audit report, which AMCON faulted, Aerocontractors (which the corporation had taken over 60 per cent of its equity) owes $200m (N34bn); Arik Air, $600m (N102bn); IRS Airlines, $55m (N9.4bn); Chanchangi Airlines, $55m (N9.4bn); and Air Nigeria, $225.806m (N35bn), as intervention funds collected by the airlines, which had since stopped operations.

 

[Punch]