The Asset Management Corporation of Nigeria (AMCON) has taken over Bao Yao Futurlex Iron & Steel Company Limited in Abuja and Bao Yao Huan Jian Iron & Steel, Calabar, Cross River State over a N3.6 billion debt owed the corporation.
This was the judgment recently delivered by Justice Binta Nyako of the Federal High Court.
According to AMCON, in a statement yesterday, the court order mandates it to take over all the assets of Bao Yao Huan Jian Iron & Steel Company Limited which are promoted by Mr. Shen Yaozhang and General Idris Garba (Rtd).
According to the corporation, “In compliance to the court order, AMCON through Mr. Robert Ohuoba, the Receiver, who also received protective orders from the court, has taken possession of Bao Yao Futurlex Iron & Steel Company Limited, Abuja.
“The assets, which are now under AMCON include Bao Yao Futurlex Iron & Steel Company Limited, Abuja as well as Bao Yao Huan Jian Iron & Steel Company Limited, Calabar belonging to the obligors.”
The order also froze all accounts of the companies in any financial institution in the name or belonging to the defendants, which include Bao Yao Futurlex Iron & Steel Company Limited; Bao Yao Huan Jian Iron & Steel Company Limited, Mr. Shen Yaozhang, Mr. Ji Yunfeng and Gen. Idris Garba (Rtd.) and all financial institutions served with the order.
Confirming that AMCON had already taken over the assets/properties as directed by the court, Head, Corporate Communications of AMCON, Jude Nwauzor, said: “We saw it coming because the said debt is long overdue.
Like we have always said, going to court with obligors is usually the last resort for us as a corporation. Whenever you see us take over company as is the case in this instance, it means we must have patiently tried to resolve the matter without going to court. “Taking over the firm as directed by the court is an indication that all efforts by AMCON to get the obligor to amicably repay the indebtedness have proved abortive.
If you have exhausted all avenues of peaceful resolution, there is no other option available to the AMCON than to commence enforcement action against Bao Yao Futurlex Iron & Steel Company Limited as well as Bao Yao Huan Jian Iron & Steel Company Limited as directed, which is also provided under Section 49- 52 of the AMCON Act.” Managing Director/ Chief Executive Officer of AMCON, Mr. Ahmed Kuru, has repeatedly reiterated that the intervention agency would collaborate with relevant government agencies in the country to intensify its pursuit of recalcitrant obligors of the corporation over a debt profile of N5 trillion.