AMCON In Dilemma Over ARIK’s Insolvency
By Our Correspondent Abuja (Precise Post) – The Assets Management Corporation of Nigeria, (AMCON) is currently overwhelmed in debt and enormous operational difficulties putting it in dilemma over what to do with the current state of Arik Air Limited which it acquired five years ago. AMCON took over the airline in February 2017 and appointed Kamilu Omokide as its Receiver Manager with the mandate to turn around the fortunes of the ailing Africa’s biggest private carrier within a short period of time. Arik Air which had up to thirty serviceable aircraft with about three thousand workforce at its peak was down to ten airpanes as at December 2017 and was unable to operate flights due to mounting debts both local and foreign. The debt profile at the time of the AMCON acquisition was put at N300 billion comprising of foreign and local debts with a backlog of unpaid staff salaries and aviation statutory charges. Total foreign debts as reported totaled $51 million with that of Lufthansa Airline put at $47 million. The mandate of the Receiver Manager was to reposition …
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