AMCON Moves To Shut Down MRS Over 81bn Debt | Independent Newspapers Limited
Newsletter subscribe

Latest News

AMCON Moves To Shut Down MRS Over 81bn Debt

Posted: Jul 12, 2016 at 4:57 pm   /   by   /   comments (0)

The Asset Management Corporation of Nigeria (AMCON) has said that it had initiated steps to wind down MRS Holdings Limited, a major player in the downstream sector of the nation’s oil and gas industry, over its inability to repay the debt amounting to N81billion.

MRS Holding Limited owned by Alhaji Sayyu Dantata is currently facing the wind-down proceedings initiated by AMCON at a Federal High Court in Lagos following the inability of the firm to settle the huge outstanding debt.

A statement by AMCON said: “MRS entered into an agreement with AMCON in February 2014 to restructure the debt, which then stood at over N74billion.

In the agreement executed by Alhaji Dantata and another executive director of the oil company, MRS agreed among other conditions that in the event of default, all concessions granted under the terms of settlement shall be revoked and the facility called in at the discretion of AMCON.

Alhaji Dantata and one of his directors also signed a default indemnity, which stated that if MRS Holdings Limited failed to pay any sum (of principal, interest or otherwise) due or to become due as agreed, MRS Holdings Limited shall pay additional interest at a default rate determined by AMCON on the unpaid sum from the date when such payment was due up to the default payment.”

AMCON had in the suit No. FHC/L/CP/923/2016 asked the Federal High Court, Lagos Division, to allow it to force MRS, a major player in the downstream sector of the oil and gas industry in Nigeria, into compulsory liquidation.

AMCON also stated that about 400 of its obligators accounted for more than N4.5trillion, which is approximately 80 per cent of the total outstanding loan balance of the corporation’s over 12,000 accounts with obligators who had become recalcitrant over time despite efforts to recover outstanding sums against them.

Only two weeks ago, it was reported that AMCON was seizing the assets belonging to the four companies Ben Bruce the chairman of Silverbird used in securing a loan – Silverbird Productions Limited, Silverbird Showtime Limited and Silverbird Galleria Limited, due to the inability of the company to repay the huge debt. However, Ben Bruce said the situation is being resolved and things will be back to normal.