Arik Air, AMCON in Showdown Over N455 Billion Debt Claim
- Arik Air shareholders have described as baseless, the AMCON claims that it is indebted by over N455 billion
- The shareholders, who are represented by Godwin Aideloje, noted that Arik Air had always been a model in operational excellence and never had insolvency issues
- They noted that they would not be joining AMCON to make further comments over a matter that is before the court, as it would amount to sub-judicial remarks
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The shareholders of Arik Air, a Nigerian airline currently managed by the Asset Management Corporation of Nigeria (AMCON), have refuted claims that the debt owed by the airline’s founder, Johnson Arumemi-Ikhide, has escalated to N455 billion.
In a statement signed by their representative, Godwin Aideloje, the shareholders dismissed AMCON’s debt figures as baseless and inaccurate.
The statement was released in response to recent claims by AMCON that Arik Air was indebted to the tune of N455 billion, the PUNCH reports.
Source: Getty Images
AMCON Allegations against Arik Air
AMCON had earlier said that Johnson Arumemi-Ikhide's total debt across his three investments had reached N455.17 billion as of December 31, 2024.
Speaking through its Head of Corporate Communications, Jude Nwauzor, in a press briefing, AMCON noted that its 2017 intervention in Arik Air averted the airline’s collapse and reiterated its resolve to recover all outstanding debts owed by businesses associated with Arik Air.
Nwauzor broke down the debts to show that Arik Air owed AMCON N227.6 billion, while Ojemai Farms and Rockson Engineering owed N14 billion and N163.5 billion, respectively, totalling N455 billion.
He added that it took the intervention of the federal government to avert selling off Arik Air due to the state of its insolvency at takeover time, as the government instead directed that it should be managed.
Recall that Nigeria's minister of Aviation and Aerospace Development, Festus Keyamo, had ordered the grounding of all Arik Air’s fleet in April last year over undisclosed reasons.
Arik shareholders respond to AMCON
However, Arik shareholders declined to speak on the matter, which they said was still before the court. They noted that resorting to subjudicial remarks was a desperate move from AMCON to override the courts and justice system.
They described the debt claims of N455 billion as fictitious. The statement signed by Aideloje referenced a Federal High Court judgment on March 31, 2023, where AMCON and its receiver manager were called upon to file audited financial reports and statements of affairs with the Corporate Affairs Commission (CAC) to compare the books.
According to the shareholders, AMCON refused to make an appearance before the Financial Reporting Council and instead went ahead to upload audited accounts of the businesses, without approval from the shareholders.
The shareholders added, in their response, that Arik Air had always been recognized for operational excellence before the takeover, and there were no traces of insolvency, as AMCON now claims.
Its response read;
“It is instructive to note the new version of the reason why AMCON took over Arik is a government mandate. What a preposterous statement from a Federal Government employee! This is a gross misrepresentation of the Federal Government as being in the business of arbitrary takeover of private businesses with a stroke of pen. This is indeed a disservice to the government and people of Nigeria by AMCON”.
AMCON Plans to merge Arik Air and Aero contractors
In a related development, Legit.ng recently reported that the AMCON announced plans to merge two struggling airlines in Nigeria into a single national carrier.
The two airlines are Arik Air and Aero Contractor, both of whom AMCON said were heavily indebted and unable to pay their local and foreign debts.
Gbenga Alade, AMCON’s managing director/chief executive officer who disclosed the move, noted that this might be the best move for both airlines as they had accumulated more debt than they could pay.
He added that even though a former aviation minister had rejected the idea, they would be presenting it again.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
