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FG may wind up Arik over losses, injects N1.5bn in airline in two months
**Court restraints former Arik directors from interference, lists debt profile
**AMCON takes over Rockson Engineering, Ojeimai farms
The Federal Government has promised to take a major decision on Arik Air according to the spokesman for Asset Management Corporation of Nigeria (AMCON), Jude Nwauzor. Nwauzor made the disclosure in an interactive session with the media today.
Penultimate week, the House of Representatives had advised the Federal Government to liquidate the airline, saying that the carrier was no longer viable and a drain on the economy.
Although, AMCON did not disclose what government wants to do with the airline, there are indications that government might wind up the carrier because it is becoming expensive to run following disclosure that government had injected N1.5b into the airline since February when AMCON took over the carrier.
Nwauzor stated that AMCON has also taken over Rockson Engineering Limited and Ojeimai Farms, two firms linked to former Chairman of Arik Air, Sir Joseph Arumemi-Ikhide.
He disclosed that AMCON took over Arik to underscores government’s decision to instill sanity in the nation’s aviation sector and prevented a major catastrophe that protected and preserved Arik.
He stated that the takeover would among other objectives enhance the value of Arik, improve customer experience, and sustain the safety, reliable and secure operational history of the airline.
His words,“Arik was in a precarious situation largely attributable to its heavy financial debt burden, bad corporate governance, erratic operational challenges and other issues, that required immediate intervention in order to guarantee the continued survival of the Airline.
Piqued by the unfolding rot still being discovered at Arik Airlines, which was recently taken over by the Federal Government under the auspices of Asset Management Corporation of Nigeria (AMCON) Honourable Justice Idris of the Federal High Court, Lagos, has granted fresh interim injunctive orders in aid of the Receivership of Arik Air based on a motion ex parte filed by AMCON and Mr. Oluseye Opasanya, SAN (the Receiver/Manager of Arik).
In an affidavit deposed to, stated that the insurance policy for the airline’s airplanes was to lapse on February 10, 2017 N418, 893, 067.97 as arrears of unpaid premium.
Produced and marked as Exhibit 1 is a demand letter from the National Pension Commission for the sum of N4, 586, 860, 471.50 being the outstanding pension remittance.
Lufthansa Tchnik Group, the company responsible for the maintenance of Arik’s airplanes is owed 31 million euros; Zenith and Access Banks are owed N28, 346, 678, 438.00 and N9, 447, 673, 924.00.
Travel solution provider, Amadeus Marketing Nigeria had according to court paper had threatened to terminate its service contract on account of outstanding obligations of about N632, 490, 151.40.
Arik was also indebted to Mariot and Best Western Hotel for the cost of N3, 800, 000 used to accommodate the engineers and other staff.
AMCON said in the course of the receivership, the second plaintiff (Oluseye Opasanya) who is receiver/manager Arik Air Limited, had received diverse claims from financial institutions, service providers, suppliers, including aviation fuel suppliers, airport and aviation authorities, insurance providers, governmental agencies, employees, pilots and many others in excess of N300billion
AMCOM however put the total indebtedness of the airline at N387billion. Other breakdown includes N11, 215, 279, 204.19 claim from the Federal Airports Authority of Nigeria (FAAN) for services and alleged use of FAAN’s facilities by the carrier.
N337, 500, 000.00 claim from Pan African Capital Limited for financial advisory services allegedly rendered to Arik; N277, 420, 978.19 being a judgement debt allegedly due to Nigerian Aviation Handling Company Plc in suit number FHC/ABJ/CS/234/08 and accrued interest of N62, 575, 254.92; N203, 895,020.37 claims for aviation insurance cover; N60, 750, 000.00, claim from Babington Ashaye and Co for tax consulting services allegedly rendered to the Arik.
Also in the claim is N40, 156, 144.68 to WakaNow.com for alleged incentive payout on the 1st Defendant ticket sales for the period 01 January -31 December 2016; $53,422,583,17 claim from Export Development Canada being monies allegedly due from the lease of aircrafts and one spare engine; $30,000,000.00, being alleged outstanding indebtedness due to Sky Enterprises LLC by the 1st Defendant; $2,500,000.00 being judgment sum alleged to have been awarded in favour of Prince Arthur Eze and Atlas Petroleum Limited in Appeal Number CA/L/378/2016; $2,500,000.00 being a claim by Ike, Ike & Associates on behalf of Prince Arthur Eze in respect of a loan alleged to have been advanced to the 1st Defendant; $942,147.02. being monies allegedly due to the FAAN for services and use of FAAN’s facilities by the 1st Defendant; $479,036.92 from Bird & Bird LLP UK on behalf of their client, Airline Rotables Ltd, being claim allegedly due for services rendered and invoiced to the 1st Defendant.
$140,610.21 being balance of payment allegedly due to Pratt & Whitney Engine Leasing LLC in respect of the lease agreement for the provision of PW 4168A –1D engine support to the 1st Defendant plus accrued interest in the sum of $37,975.10; and $26,556.37 being alleged outstanding payments to World Fuel Services Inc.
