New Evidence Confirms that Afribank’s Liquidation and the Transfer of its Assets to Mainstreet Bank are “Illegal”
LONDON, United Kingdom, 31 July 2014 -/African Media Agency (AMA)/- The Purchase and Assumption Agreement (PAA), disclosed in June 2012 to the International Court of Arbitration in Paris and revealed by the financial agency Ecofin serious doubts about the legality of the liquidation of Afribank and subsequent transfer of its assets to Mainstreet Bank.
Extract from Ecofin article (http://www.agenceecofin.com/banque/2507-21825-intangis-pointe-des-anomalies-dans-l-accord-de-rachat-entre-mainstreet-bank-et-l-organisme-nigerian-ndic)
“The agreement submitted to the International Court of Arbitration (ICC) in June 2012 and to be certified as contains a page fault (” page 32 on page 33 and then 32 to 34″) and is not dated (August 211, without further specification). It is therefore not consistent or falsified, “says our source. He added: “Moreover, in the first sentence in September 2013, ICC speaks of anomalies, doubts about the authenticity of the document and challenge the legality of the operation.”
There are, on the other hand, the document provides no details on the transfer of assets of Afribank. “While this document requested by ICC was supposed to explain the liquidation of Afribank and the transfer of assets in Mainstreet Bank between 5 and 8 August 2011, it has produced no evidence on the transfer of assets and their evaluation” says our source believes that “illegal” transfer based on this document.
“The transaction concluded in Nigeria between 5 and 8 August 2011 is illegal and the PAA evidences this. We feel vindicated after the sentence of the International Court of Arbitration that Afribank’s shareholders and creditors have been stripped of their rights”, says Jean Missinhoun, senior partner of Intangis Holdings.
Created in 2010 to deal with non-performing loans held by Nigerian Banks directly affected by the 2008 international financial crisis, the Nigerian “Bad Bank” Amcon has broadened its mandate by taking participation interests into the share capital of Mainstreet Bank, but also Enterprise Bank (formerly Spring Bank) and Keystone Bank (formerly Bank PHB). Now Amcon is considering a divestment from the share capital of Mainstreet Bank, omitting to make provision, as required by the international accounting standards (IFRS), for certain liabilities of Mainstreet Bank estimated by Intangis at $1.4 billion.
At the time Amcon invested in its share capital, Afribank with total assets of US$ 3 billion was ranked 16th among West African banks according to the 2009 league table “The top 200 African banks”, published by Jeune Afrique magazine. Afribank was also listed in the Dow Jones index “Africa Titans 50.”
“If Amcon manages to sell Mainstreet Bank after having organised such a transaction and without ensuring proper reporting of the bank’s books, we would be dealing with a huge scandal. The banking group would be jeopardized, its customers endangered and its historic shareholders and creditors would suffer irreversible damages. Intangis Holdings cannot believe that Nigerian authorities would tolerate such actions in contradiction to the requirement for transparency and good governance”, adds Jean Missinhoun.
On July 1, 2014, Intangis filed a complaint for damages for tortious interference with contract against Amcon in the Supreme Court of the State of New York.
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