Why AMCON Took Over Dangote’s factory
The Asset Management Corporation of Nigeria, AMCON last Friday successfully took over possession and management of Dansa Foods Processing Company Limited belonging to Sani Dangote in order to recover its N400 million outstanding debt.
Sani Dangote is the younger brother to Aliko Dangote, Africa’s richest man.
The takeover of the company followed the orders of the Federal High Court granted by Justice C. Olatoregun in the exparte application filed by the Receiver/Manager appointed by AMCON in March 2016, Ekokoiesua Urua.
The takeover of control of the company is part of AMCON’s efforts to recover over N400 million outstanding debt, out of over N4 billion owed Union Bank, which the company failed to pay.
In 2008, Union Bank had granted Dansa Foods Limited’s request for a N5.2 billion loan.
The loan comprised an overdraft of N500 million; short term loan for advertisement (N500 million), equipment lease (N300 million), equipment lease (sale and lease back, N300 million), and import finance (N3.6 billion).
The loan was disbursed by the bank, and fully utilized by Dansa Foods company, which duly executed a deed of all assets debenture in favour of Union Bank
However, despite all efforts by the bank, including several letters by its solicitors, the company did not liquidate its outstanding indebtedness of about N400 million.