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Court orders AMCON to pay Capital Oil N26.5bn

By Ikechukwu Nnochiri

ABUJA—The Federal High Court sitting in Abuja, Thursday, ordered the Asset Management Corporation of Nigeria, AMCON, to pay N26.5 billion to Capital Oil and Gas Industries Ltd.

The court, in a judgement delivered by Justice Abdul Kafarati, equally made an order appointing an independent auditor to ascertain losses the firm which is owned by a one-time governorship aspirant in Anambra State, Chief Ifeanyi Ubah, incurred due to failure of AMCON to comply with its obligations under a consent judgement it entered for the parties on June 21, 2013.

The consent judgment followed an agreement between Ubah who is majority shareholder in Capital Oil, and AMCON, for the restructuring of debts the firm owed various creditors, including banks, suppliers and staff.

Under the arrangement which was backed by the court, AMCON was to provide N55.89bn to the plaintiff for the repayment of the debts, as well as an additional N16bn as trading capital to the plaintiff for the purpose of its petroleum products’ trading business.

 


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