Businessman, Ifeanyi Patrick Ubah and his company, Capital Oil and Gas Industries Limited, have sued the Asset Management Company of Nigeria (AMCON) and its Managing Director, Ahmed Lawan Kuru for alleged violation of the terms of a consent judgment they all entered in 2013 over Capital Oil’s N81 billion debt.
In a fresh motion for committal brought against AMCON and Kuru before the Federal High Court, Abuja, Ubah and his company stated as a way of resolving the dispute between them and AMCON over N81b debt owed to banks and business associates, parties entered into a consent judgment in 2012 part of which terms allows AMCON to run Capital Oil for two years, pay out all its debt manage it out of risks and inject N16b into the company to enhance its liquidity.
Ubah and Capital Oil further stated that after they had met their terms of the judgment, which saw Ubah handing assets valued at N78b to AMCON, the company had failed to meet its terms of the judgment and was allegedly plotting to appoint a receiver manager for Capital Oil with the intention of winding it up.
“In spite of the return of the 1st applicant (Capital oil) to the 2nd applicant (Ubah) as Managing Director pursuant to the consent judgment in suit No; FHC/L/CS/891/14 the 1st alleged contempnor continued to fail and or neglected to provide trading finance in the sum of N16 billion to the 1st applicant, which had the effect of practically incapacitating the 1st applicant’s ability to trade in petroleum products.
“The 1st alleged contemnor has also not paid off the 1st applicant’s obligations to most of the 1stapplicant’s trade creditors, who have resorted to various legal proceedings to recover their funds and who are likely to take further steps against the assets of the 1stapplicant if they are not paid.”