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90% of N181b non-performing loans are from aviation sector, says AMCON MD
- Why firm intervened in Arik, Aero
The Assets Management Corporation of Nigeria (AMCON) has disclosed that 90 per cent of about N181 billion non-performing loans it purchased from various banks were from the aviation sector.
Managing Director/Chief Executive Officer, (AMCON) Ahmed Kuru made the disclosure yesterday in a paper he presented at the 6th Nigeria Transport Awards And Lecture held at Sheraton Hotels, Ikeja, Lagos.
In a lecture entitled, “AMCON’s intervention in Transport and Allied Sector; Achievements, Challenges and Prospects,” Kuru explained that to place the companies in a position to recover and generate adequate cash flow, they gave additional un-lending facilities (in collaboration with CBN and BOI) of almost N40 billion on very good terms.
“Unfortunately, notwithstanding this support, the companies could neither pay the old nor new loans. We have therefore been compelled to appoint Receiver Managers over a lot of the companies, the biggest being Arik and Aero”.
He further stated that AMCON’s intervention through the instrumentality of Receiver Management was first to stabilize the operations of the airlines, put them in a position to generate positive cash flow, then resolve their debt situation through either the owners paying the debts or the sale of the companies/underlining assets.
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