Asset Management Corporation floats Holding Company
The Asset Management Corporation of Nigeria (AMCON) is floating a Holding Company (HoldCo) structure that will enable it warehouse and sell aviation assets for strategic exit from the sector.
A top executive of the company said that the corporation has applied for Air Operating License (AOL) that would enable it commence the HoldCo structure once the license is approved.
The corporation said Arik Air, Aero Contractors, Afrijet, and two other undisclosed airlines will come under the HoldCo structure to be managed collectively, instead of managing them separately.
“The strategic exit plan, was to float a holding company, warehousing all aviation assets for easy sale,” the corporation said.
The corporation said NG Eagle, one of its airlines, is branded and on ground at the airport waiting for the AOL licence to begin operation. “We have already Air Operating License, and once its granted, every other thing is in place for the HoldCo plan to take off,” it said.
AMCON Managing Director/CEO, Ahmed Kuru said the corporation saved Arik Airlines (the largest local carrier) and Aero Contractors (the oldest carrier) from shutting its operations at the nick of time, among others.
Kuru said AMCON has also done very well, especially in the aviation and manufacturing sectors. “Our intervention efforts in Arik Air with the support and collaboration of the Federal Government did a great service to the growth of the sector.
“A similar intervention in Aero Contractors also saved the airline from collapse. As a matter of fact, the Nigerian Civil Aviation Authority (NCAA) certified Aero, which is under AMCON receivership to commence C-check maintenance services on Boeing series in Nigeria. This is a commendable feat in Nigeria’s aviation industry and there are several other companies that we have saved,” he said.
He said that in an attempt to focus its resources on the recovery mandate, AMCON has identified about 6,000 loans with outstanding balances below N100 million, which constitute only 20 percent of our current portfolio.
“This portfolio has been outsourced to debt recovery agents under the Asset Management Partners (AMP) scheme, which has created huge employment opportunity for others. This has enabled the Corporation to focus on fewer accounts, which make up 80 per cent of the portfolio,” he said.
Recovery Mandate
Continuing, Kuru said that in its reckoning, if AMCON is able to resolve the nearly 2,000 accounts it would have achieved more than 80 per cent of its recovery mandate.
“In line with our sunset period, we are tinkering with the idea of increasing the threshold of the AMP scheme to N1billion. We have also classified 350 accounts with current exposure of over N3.2 trillion into a category referred to as Criticized Assets,” he said.
He said the resolution of these accounts will be germane to the success of AMCON’s recovery mandate.
“We give special attention to these accounts at top management level and develop strategies for resolving them. The largest concentration is in the energy sector, which constitutes 27 per cent. As we have always stated, one of the major challenges to AMCON’s recovery mandate is the slow pace of our judicial processes. However, we have continued to engage with the judiciary, and we believe that there is now greater awareness about the role of AMCON amongst the Judges at the trial courts as well the Justices of the appellate courts and they have been supportive,” he said.
Kuru explained that AMCON is fighting for the good of all Nigerians because recovery of these monies and its judicious application to the Nigeria economy will improve critical infrastructure such as roads, rail lines, security, power generation and distribution, mass housing and a whole lot of others.
Nation/Hauwa Abu
