AMCON Takes Over Aero Contractor As the Airline’s Debt Hits N32 Billion
Nigeria’s aviation industry seems to be in for some hard times as one crisis or the other continuously rocks the industry. Barely 24 hours after Nigerian major carrier, Arik Air was shut down due to an alleged indebtedness of about N18 billion, the second biggest airline in the country, Aero Contractor was today taken over by the Asset Management Company of Nigeria (AMCON), a body established by the Federal Government to buy debts of ailing companies in Nigeria.
This development is coming few weeks after another major airline, Air Nigeria shut down and sacked all its workers due to huge indebtedness and alleged fraud by the management of the airline led by controversial billionaire, Jimoh Ibrahim.
With the taking over of Aero Contractors, the Asset Management Company of Nigeria (AMCON) will now take responsibility for the N32 billion debt the airline has accumulated in many commercial banks as non performing loans.
The airline which is managed secretly by the convicted ex-managing director of the now acquired Oceanic Bank, Mrs Cecilia Ibru announced the take over today saying: “We can confirm that Aero’s debt has been taken over by AMCON. Currently Aero is going through a restructuring exercise under AMCON, pending final approval by AMCON board which is expected very soon. However the airline is allowed limited access to funds by the banks through AMCON for its working capital.”
The move by AMCON, it was learnt today has already created panic in the unstable aviation sector where most of the airlines are highly indebted, as a result of which they provide poor services to passengers.
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