Nigeria: Talks Still Ongoing Over Pan Ocean's N240bn Debt, Amcon Clarifies

30 October 2020

The Asset Management Corporation of Nigeria, AMCON, yesterday, said that it is yet to finalise an 'out-of-court settlement' with the management of Pan Ocean Group, over the latter's N240 indebtedness.

In a statement in Lagos, the Head, Corporate Communications, AMCON, Jude Nwauzor, stated: "Justice A.M. Liman in suit No. FHC/L/CS/722/20 ordered AMCON and its assigned designate to take over several oil mining and oil prospecting licenses that are exemplified by OML 147 (formerly OPL 275), OML 152 and OML 98 respectively.

"The order also mandated AMCON to take over the property lying and situate at No. 33b, Adebayo Doherty Street, off Admiralty Way Lekki Phase One in Lagos State, as well as the property lying and being specifically known as FF Towers, Plot 13/14 Ligali Ayorinde Avenue, Victoria Island, Lagos and a host of other assets. The court also granted an order appointing AMCON as a Receiver Manager (in accordance with its 2019 Act as amended).

"As a result of the takeover, Pan Ocean and its promoters have been in on-going discussions with AMCON to see how to amicably resolve the debt through a settlement framework, which is yet to be presented to the court."

Confirming the settlement, Pan Ocean's Management had stated that the settlement is welcomed and allows the businesses to focus on their core operations.

The N240 billion indebtedness of Pan Ocean had led to its takeover by AMCON in July 2020.

As a result, Pan Ocean Oil Corporation Nigeria Limited alongside Newcross Petroleum Limited had, few days ago, stated that they had reached an out-of-court-settlement with AMCON on the issue, however, pending the consent of a Federal High court.

This settlement is in line with AMCON's role as a resolution vehicle to help stabilize and revitalize the Nigerian banking system and economy. The agreement by AMCON and Pan Ocean would bring to an end, the debt dispute between AMCON, Pan Ocean and other syndicate of lenders.

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