25 June 2019

Nigeria: N12.9bn Debt - Amcon Takes Over Debtor's Properties

The Asset Management Corporation of Nigeria (AMCON) on Tuesday, took over Victory Park Estate, Lekki, Lagos, following a N12.9 billion judgment debt it won at the Court of Appeal in Lagos.

After an appeal court upheld the judgment of a Federal High Court allowing the agency to take over properties of the defendants on June 3 over unpaid debts to various banks, the agency notified the residents of the estate and subsequently took over the estate.

The defendants in the matter are, Knight Rook Ltd, Grant Properties Ltd, Olajide Awosedo, Olawunmi Olajide-Awosedo, Abimbola Olajide-Awosedo and Fibigboye Estates Ltd.

The judgment delivered by Justice Ibrahim Buba of the Lagos division of the Federal high court on October 3, 2017 directing the takeover reads:

"Judgment in favour of the claimant against all the defendants for the immediate payment in the sum of N10,731,163,405.8 (ten billion, seven hundred and thirty one million, one hundred and sixty three thousand, four hundred and five naira and eight kobo) being the defendants indebtedness to the claimant as at 30th June 2016 in respect of its non performing credit facility obtained from Sterling Bank plc, Wema Bank plc, Skye bank plc and Unity Bank plc and purchased by the claimant as Eligible Bank Assets(EBAs) pursuant to the Asset Management Corporation Act 2010 (as amended). "

"Judgment in favour of the claimant for the immediate payment of the interest due at the rate of 15% (as per Central Bank of Nigeria guideline) on the sum of N10,731,163,405.8 (ten billion, seven hundred and thirty one million, one hundred and sixty three thousand, four hundred and five naira and eight kobo) from 1st of July 2016 till judgement is entered in this suit. "

"An order for foreclosure of the defendants equity right of redemption or such other rights in respect of all that properties of the defendants including the property being 14hectares of land lying, situate and known as victory park estate, Igbokushu, behind Femi Okunnu Housing Estate, Lekki Peninsula scheme II, Lagos State registered as No. 88 at page 88 in volume 2337 in the lands and registry, Alausa, Ikeja, Lagos State and such other properties, moveable and unmovable, comprising of buildings, fixtures, stocks, vehicles, machines and any other chattel whatsoever owned by the defendants, and apply proceeds of such disposal in the settlement of the defendants indebtedness to the claimant. "

"An order empowering the claimant to take over all the movable and immovable properties of the defendants including but not limited to house j1 Olajide Awosedo Avenue, Goshen Beach Estate, Lekki, Lagos State registered as No. 96 volume 2184 in the lands registry,Alausa,Ikeja, Lagos for the satisfaction of the defendants indebtedness. "

"An order against the defendants jointly and severally for the payment of N20,000,000.00(twenty million naira) being the cost of litigation. "

"An order directing the Inspector General of Police of the Federal Republic of Nigeria and all other such officers under his command to provide necessary assistance to the bailiffs and/or deputy sheriff of this court in the enforcement of the judgment made by this court in this suit. "

The notice sent to the residents by AMCON read "AMCON hereby notifies all Occupiers, Residents and all persons laying claim to any portion of land comprised within the Victory Park Estate, Lekki, Lagos that on 3rd June 2019, the Court of Appeal (Lagos Division) in the Appeal No: CA/L/146/18 dismissed the Appeal filed by Rev Olajide Awosedo against the Judgment of the Federal High Court delivered on 3rd October 2017 in the Suit No: FHC/L/CS/744/17 - Asset Management Corporation of Nigeria v. Knight Rook Ltd & Ors, by which a Judgment sum of N12,966,510,191 was cumulatively awarded in favour of AMCON against Knight Rook Ltd, Grant Properties Limited, Rev Olajide Awosedo, Olawunmi Olajide-Awosedo, Abimbola Olajide-Awosedo and Fibigboye Estates Ltd .

"Which judgment also specifically foreclosed the Defendants' right to the assets of Knight Rook Limited comprised within Victory Park Estate, Lekki, Lagos, among other assets, in satisfaction of the Judgment, which Judgment has been executed by AMCON."

The statement further directed all persons affected by the judgment and enforcement to contact AMCON through its solicitors or its receiver/manager.

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