N4bn Debt: Court Grants AMCON's Request to Take Over Firm's Asset

Monday, September 14, 2020 / 11.00PM / Victoria Onu ofThe Point / Header Image Credit: AMCON

Following the order of Justice M.S. Hassan of theFederal High Court, Lagos division, the Asset Management Corporation of Nigeriahas taken over assets belonging to Mr. Frank Okwudili Ezuma and Mrs. LilianIfeoma Okwudili Ezuma, the chief promoters of Geedee Zulu Investment Limitedover an indebtedness of over N4bn.

In compliance with the enforcement order, AMCONsaid it had commenced the process of effective possession of the propertiesthrough its Debt Recovery Agent - Prime Chamber Law Firm.

The takeover, which has now been completed, includeproperty located at No. 4 Ekulu Close, GRA Enugu, Enugu State; and propertyAlong Gborji Road, Aguluezechukwu in Anambra State.

The Head, Corporate Communications Department ofthe Corporation, Jude Nwauzor, who confirmed the takeover in a statement onMonday, however, stated that all avenues of peaceful resolution were exploredto no avail before AMCON made the decision to seek justice in the court of law.

AMCON, he reiterated, tried everything possible tolet the obligor see reasons but noticed a deliberate disdain towards allprevious engagements with the chief promoters of the enforced company.

The case of Geedee Zulu Investment Limited and itspromoters have been interminable since the loan was purchased by AMCON duringthe first phase of Eligible Bank Assets purchases from Union Bank in 2011.

Since the purchase of the EBA, AMCON said it hadoffered the obligor all manners of concessions and explored all avenues toresolve the debt harmoniously.

However, it said the obligor and his company,Geedee Zulu Investment Limited, had remained recalcitrant and unenthusiastic torepay the huge debt to AMCON.

With no further option left, the government agencyresorted to the court as mandated by the AMCON Act, which was amended by the8th National Assembly and signed into law by President Muhammadu Buhari.

The amended AMCON Act provides the Corporationadditional powers to go after AMCON obligors, especially those of them thathave perfected the act of taking advantage of the shortcomings of the Actbefore its amendment, The Point reports.

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