The management of Asset Management Corporation of Nigeria (AMCON) yesterday reacted the Federal High court ruling in one of the cases involving the government agency and Resort International Limited, one of the companies owned by Dr. Wale Babalakin SAN. The Federal High court, which sat in Lagos had ordered AMCON to pay Bolanle Babalakin, who is also the Chairman of Bi-Courtney Group of Companies N3 billion for publishing his name as a debtor.
But in a swift reaction, AMCON through a statement issued by Mr. Jude Nwauzor, Head, Corporate Communications Department of the government recovery agency stated: “AMCON has eleven (11) suits in various courts with Dr. Wale Babalakin SAN, and his four companies in the aggregate sum of N54billion, including Resort International Limited (N20.5B) and there is no doubt he and his companies are as at date indebted to the Corporation and this much he admitted in pleadings and evidence in court.
“The issue in this particular case with Resort International Limited was whether the amount/Advance Payment Facility is a loan or an investment which he secured from the Bank. As you are aware the banking industry and the financial sector was put in crisis as a result of huge Non- Performing Loans (NPLs) of obligors and their failure and or refusal to pay is what necessitated the creation of AMCON. The Corporation would review the judgement and appeal to see to whether or not it could stand the test at appellate level.”