The Asset Management Corporation of Nigeria (AMCON)’s takeover of Arik Air is causing controversy, even as the two organizations contest the decision of the Federal High Court sitting in Lagos on Friday.
While earlier news reported by our correspondent claimed that the Federal High Court halted the decision to transfer Arik Air Limited’s assets to AMCON, a statement by an AMCON media consultant debunked the claim, claiming that the judge affirmed the airline’s takeover.
AMCON’s interpretation of the court ruling
According to AMCON’s statement, the Judgement clearly and unequivocally affirmed that AMCON was competent and empowered to appoint the Receiver/Manager of Arik.
It also maintained that AMCON’s appointment was proper and that Arik’s operations were unaffected.
AMCON insisted that the judgment had no bearing on Arik’s operations or the Receiver/authority Manager to oversee the airline’s affairs.
Part of the statement said:
The attention of the Receiver/Manager of Arik Air Limited (in Receivership) (Arik) and the Asset Management Corporation of Nigeria (AMCON) has been brought to several online publications concerning a judgment of the Federal High Court, Lagos delivered on Friday, March 31, 2023 (the Judgment).
The general public should please note that the Judgement clearly and without equivocation affirmed that AMCON was competent and empowered to appoint the Receiver/Manager of Arik, that the appointment by AMCON was proper, and that the continued operations of Arik are not affected. Put simply: the judgment does not affect the operations of Arik or the powers of the Receiver/Manager to superintend the affairs of Arik.
Specifically, the judgment did not either: (i) rule against the appointment of the Receiver/Manager of Arik or (ii) “grant all the prayers of the Plaintiffs” as stated in certain online publications. The court did hold that the Receiver/Manager was obligated to act in the best interests of Arik and other creditors – a point that AMCON and the Receiver/Manager have never disputed.
Appeal by AMCON
The corporation added that in any event, AMCON and the Receiver/Manager were dissatisfied with certain parts of the judgment relating to its dealings in specific transactions concerning limited assets, stressing that AMCON was exercising its constitutional rights to appeal, in respect of these.
It reiterated that the issues under appeal had no bearing on the continued operation of Arik as a company in receivership, noting that the court had already affirmed this.
Just on Saturday, some online media (mot Nairametrics), alleged that the Federal High Court sitting in Lagos had stopped the decision to transfer Arik Air Limited’s assets by AMCON, to another company to take over their operations.
The ruling was allegedly given by Justice Ambrose Lewis-Allagoa of a Federal High Court.
What you should know
Arik Air, led by its founder Johnson Arumemi Ikhideits and co-plaintiff Mary Arumemi Ikhide, sued AMCON, its Group Head, NG Eagle Limited, Super Bravo Limited, and the Nigeria Civil Aviation Authority (NCAA) over the takeover of Arik Air Limited’s assets and management.
The plaintiffs sought four reliefs in their suit, including a declaration that the duty imposed on the 1st Defendant by Section 553 of the Companies and Allied Matters Act 2020 to act in the best interests of Arik Air Limited as a whole includes the duty to act in the best interests of the Plaintiffs as members of Arik Air Limited.
