AMCON takes over Ibadan DISCO over unpaid debt

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The Asset Man­agement Corpo­ration of Nigeria (AMCON) has given details of how it ex­ecuted the takeover of Integrated Energy Dis­tribution and Marketing (IEDM) Limited, the core investor of Ibadan Elec­tricity Distribution Com­pany (IBEDC), following a default in a loan servicing agree­ment executed with Polar­is Bank.

Platforms Africa reports that the agency conveyed the change of baton in the electricity firm in a public notice, where it also disclosed that it had appointed Mr. Osayaba Giwa-Osagie (SAN) to take over the entire undertak­ings, assets of IEDM in­cluding shares and inter­ests in related companies and entities, and also mon­ies kept in the 25 banks in Nigeria.

The agency said it ex­ecuted the takeover of IEDM following a default in a loan servicing agree­ment executed with Polar­is Bank.

 

AMCON has pursuant to section 48 and 61 of AMCON Act 2010 been ap­pointed receiver/manager over all the Assets of In­tegrated Energy Distribu­tion and Marketing Lim­ited as stipulated in the instruments executed in favour of AMCON by vir­tue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dat­ed 30th November 2018 and a Notice of Appointment of the Receiver/Manager dated August 6th, 2021, which was duly stamped by the Commissioner for Stamp Duties”, the state­ment read.

AMCON
It would be recalled that the Nigerian Electrici­ty Regulatory Commis­sion (NERC) had earlier slammed N50 million fine on the power firm for “its failure to secure a refund of an interest free loan the board of IBEDC granted to its core investor group.

The power company had at a press conference in Ibadan last August re­vealed that it has clean fi­nancial bill of health, just as it announced billions of naira investment on busi­ness expansion.

The power firm also said it was pursuing ag­gressive drive to meter customers as well as nip energy theft in the bud.

Some stakeholders in the power sector, however, said the big stick being wielded by AMCON on the power company was foretold on the ground that it has been in crisis lately which has affected its ser­vice delivery to customers.

•Platforms Africa