AMCON to Appeal Judgement on Arik Air’s Assets
Chinedu Eze
The Assets Management Corporation of Nigeria (AMCON) has said it would appeal the judgement delivered by the Federal High Court, Lagos, last Friday on Arik Air.
A statement from the Corporation said the attempt to transfer Arik Air Limited Assets to NG Eagle Airlines (third defendant), an airline that AMCON tried to transmute Arik to, and Super Bravo Limited, was not in the best interest of Arik Air as a whole.
The court had ruled that the transfer of Arik Air Limited assets to NG Eagle Limited, Super Bravo Limited (fifth defendant) was done in bad faith and a violation of Omokhide’s fiduciary duty to Arik Air Limited as a whole imposed by section 553 of CAMA 2020.
But AMCON in a statement yesterday said that the judgement clearly and without equivocation affirmed that corporation was competent and empowered to appoint the Receiver/Manager of Arik and that the appointment by AMCON was proper. It stated further that the continued operations of Arik were 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,” the statement added.
AMCON also said the judgement did not rule against the appointment of the Receiver/Manager of Arik or, “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.
“In any event, AMCON and the Receiver/Manager are dissatisfied with certain parts of the judgment relating to AMCON’s dealings in specific transactions concerning limited assets. We are exercising our constitutional rights to appeal, in respect of these.
“The public should bear in mind that the issues under appeal have no bearing on the continued operation of Arik as a company in Receivership – as the Court has already affirmed the Receivership,” the statement also said.
