- AMCON is seeking to recover N227.64 billion from Arik Air, with total debts including affiliates exceeding N455 billion
- Arik Air’s fleet was in disarray at takeover, with only eight operational aircraft, and the airline was technically insolvent since 2014
The Assets Management Corporation of Nigeria (AMCON) has released an account of the aircraft in the fleet of Arik Air, eight years after its acquisition, even as it said that Arik Air is owing the corporation N227,637,469,394.34 billion.
This is in addition to additional debts carried by the airline’s founder, Sir Johnson Arumemi-Ikhide, who is also the promoter of Rockson Nigeria Limited (a power infrastructure firm), Ojeimai Farms Limited, and Ojemai Investment Limited.
AMCON’s Head of Corporate Communications, Mr. Jude Nwafor, explained that Rockson Engineering owes N163,502, 837, 397.75billion and Ojemai Farms owes N14, 031, 457, 980.71 billion, adding that the companies’ debts were transferred by various banks to AMCON due to their non-performance, with a total indebtedness of N455, 171, 764, 772.80 billion as of December 31, 2024.
He spoke with newsmen in Lagos where he corrected reports regarding its administration of Arik Air which it took over in February 2017 and is still under receivership. Since the takeover, shareholders of AMCON and Arik Air have been involved in legal drama, with multiple court lawsuits now pending.
Nwafor explained that irrespective of what he called, “smear campaign” against AMCON, “these debts must be recovered one way or the other.”
He stated that AMCON in line with the provision of the Act establishing it has the option of liquidating the airline in order to recover its debt.
He stated that the leadership of AMCON knows that there is no nice way of recovering debt, adding, “For that, obligors go to any length to assassinate the characters of both AMCON staff and Management, they malign the name of AMCON, intimidate, and harass our personnel with every arsenal at their disposal.”
The AMCON spokesman stated that an audit report by PWC confirmed that Arik had been technically insolvent since 2014, with its liabilities exceeding its assets throughout 2015 and 2016, up until the commencement of the receivership in 2017.
“As of December 2016, Arik’s negative shareholder capital stood at ₦139 billion, nearly equivalent to its debt to AMCON,” he stated.
Giving an account of the aircraft inherited during takeover, he stated that the Receivership Team “found a fleet in disarray, with only eight operational aircraft (as against the inaccurate 30 being bandied about), many of which required urgent maintenance.”
Nwafor further clarified that 21 Arik Air’s aircraft were not available for service when AMCON took over while listing the countries where the aircraft were kept, adding that 16 aircraft were under the control of Arik Air as of August 2024.
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