AMCON Not In Current Discussion With Ethiopian Airlines

Our attention has been drawn to a barrage of media reports, which claimed that there are discussions going on with Ethiopian Airlines for the carrier to render management services to Arik. Contrary to these reports, a Press Release signed by AMCON spokesperson, Jude Nwauzor said, “The Asset Management Corporation of Nigeria (AMCON) is not aware of any current discussion or negotiation with the management of Ethiopian Airlines regarding Arik Air Limited (Arik).
“Arik was placed in receivership last February, following the airline’s inability to repay debts in excess of N300 billion to AMCON and other creditors in Nigeria and around the world. It is on record that the Receivership Team has within the period stabilised the operations of the airline, marked by stability of schedules; improved On-Time-Performance (OTP) and revamped customer service among others. Today, the Airline has regained its dominance as the most reliable carrier in the country with growing passenger patronage and confidence.”

The statement added that the general public and all stakeholders will be kept duly informed on issues relating to the airline’s divestment plan.
AMCON was created when the financial system was on the brink of total collapse similar to the one experienced in Europe and North America during the global financial crises of 2008 and 2009. The banks stopped lending, and the economy was shutting down rapidly until AMCON was established as a special intervention and resolution vehicle under the supervision of the Central Bank of Nigeria (CBN) and the Ministry of Finance.

The Parliament, in their wisdom, recognized the need for AMCON and in working with the executive established the special resolution vehicle, which was vested with extra ordinary powers in order to achieve its three core objectives of Providing liquidity to the financial institutions by (purchasing the non-performing loans; direct injection of capital by way of financial accommodation); Take over the troubled assets, treat and subsequently dispose them for good returns; and Support the businesses where possible.

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