The Asset Management Company of Nigeria (AMCON) has denied plans to shut down or liquidate the Nigerian Braiding Manufacturers Limited (NBML). The “bad bank” disclosed this in a statement issued recently.
Why AMCON took over
AMCON , according to its spokesman Jude Nwauzor was forced to take over following the refusal of the owners of the company to negotiate terms of payment of the debt. The bad bank then obtained a court order enabling it to take possession of the Company through its Receiver Manager, Dr. Yakubu Fobur. The company according to the statement will resume full production soon.
Origin of the loan
Nigeria Braiding Manufacturing Limited in 2000, obtained an overdraft facility of N100 million from Oceanic Bank. However, the firm filed a suit at a Kano State High Court protesting what it termed exorbitant bank charges which led to the loan reportedly ballooning to over N1 billion. Oceanic Bank was eventually acquired by Ecobank, and the loan purchased by AMCON.
The Asset Management Corporation of Nigeria (AMCON) was established on the 19th July 2010, when President Goodluck Jonathan signed the AMCON Act into law.
The “bad bank” is owned by the Federal Government but its shares are held by the Central Bank of Nigeria (CBN) and the Ministry of Finance in trust. The corporation has recovered N1 trillion from debtors since inception, with cash accounting for 60% of recoveries. while
Nigeria Braiding Manufacturing Limited (NBML), was established in 1962, and is located in Kano State. The company employs over 1000 workers.