Travel News

The Asset Management Corporation of Nigeria (AMCON) looks forward to the shareholders of Arik Air (W3, Lagos) raising funds and paying the asset manager to release their company back to them as soon as possible, the stricken airline's receiver, Omokide Kamilu Alaba, has informed ch-aviation.

He was responding to a query following a report by The Guardian newspaper in Lagos that AMCON intends to withdraw from the ownership and operations of Arik Air, which has been under its receivership since February 8, 2017.

AMCON - a Nigerian federal government-owned asset recovery entity - assumed control after Arik Air racked up debts of NGN141 billion naira (USD186.6 million) to banks. Kamilu Alaba explained that AMCON was not a shareholder, but was administrating the receivership - an insolvency action over debt owed.

However, according to The Guardian's unnamed sources, AMCON now plans to withdraw, either through negotiations with Arik Air's shareholders or by liquidating its assets. The sources suggest that AMCON's takeover of the financially troubled airline in 2017 was driven more by political and economic considerations than the airline's viability, leading to the decision to withdraw from its ownership.

Arik Air shareholders recently expressed concern over the apparent depletion of the airline's assets under receivership and that the airline's receiver manager failed to publish audited accounts as directed by the Nigerian Federal High Court in Lagos on March 31, 2023.

AMCON has stated its intention to appeal the court ruling that prevents the asset manager from transferring Arik Air's assets to launch a new airline.

According to Kamilu Alaba, AMCON has made several attempts to settle the debt and return the airline to its shareholders, including a 2018 proposal to settle the debt fully with a payment of NGN65 billion (USD82 million). Omokide stated that should shareholders cooperate, AMCON was willing to bring in new investors.

Despite the strained relationship between the parties and their involvement in legal proceedings, Kamilu Alaba said AMCON remains open to finding a settlement with the shareholders as the objective is to recover debt and not engage in disputes.