The Asset Management Corporation of Nigeria (AMCON) has explained why it took over the assets of Integrated Energy Distribution and Marketing (IEDM) Limited, the core investor of Ibadan Electricity Distribution Company (IBEDC).
AMCON made the disclosure in a public notice, saying it executed the takeover of IEDM following a default in a loan servicing agreement executed with Polaris Bank.
The company also said it had appointed Osayaba Giwa-Osagie to take over the entire undertakings.
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According to the AMCON, the takeover also include the assets of IEDM, including shares and interests in related companies and entities, in addition to the monies kept in any of the 25 banks in Nigeria.
The statement reads in part: “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 Nigerian Electricity Regulatory Commission (NERC) had previously fined IBEDC ₦50 million for ‘its failure to secure a refund of an interest-free loan the board of IBEDC granted to its core investor group.”
The battle for the takeover was settled when a Federal High Court transferred the control of the Ibadan Electricity Distribution Company Limited to the AMCON as a result of the loan default.
Confirming the take over to the members of staff, the Chief Operating Officer of the IBEDC, Mr John Ayodele in a memo to the workers of the company on the development, called for calm and prayers.
The COO in the memo, dated January 20, said the right of control had been ceded to AMCON on the strength of a September 8, 2021 Federal High Court judgment.
The memo stated that the judgment granted preservative orders in favour of AMCON.
He confirmed that, with the development, the asset management corporation had appointed a lawyer to serve in the receivership action.
He explained that the receiver arrived on Thursday, January 20, to take charge formally and held a meeting with the management staff of the IBEDC.
He however allayed the fears of the company on the development and assured them of job security.
The memo reads in parts, “Further to the judgement wherein the Federal High Court on the 8th of September, 2021 granted preservative orders in favour of Asset Management Corporation, (being the Receiver/Manager of Integrated Energy Distribution and Marketing Limited); the court has appointed Mr Kunle Ogunba (SAN) to act as Receiver/Manager Nominee in the receivership action.
“Based on the foregoing, the Receiver/Manager came in today (Thursday) 20th January, 2022 to the IBEDC headquarters to take charge formally and, subsequently, met with the Management team. Therefore, I hereby wish to inform all staff that there is no cause for alarm.
“We are assured of job security which entails our position/duties in the company, being entitlements to our salaries and other benefits etc.
“On behalf of the Management, I urge us all to kindly go about the efficient discharge of our duties to ensure a speedy and mutually beneficial resolution.
“I wish us all the best, while I appeal that we continue to remember IBEDC in our prayers.”