ifeanyi Ubah

A Federal High Court has ordered the Asset Management Corporation of Nigeria (AMCON) to pay Capital Oil and Gas Limited the sum of N26 billion in compliance with agreed terms which the court adopted as a consent judgment in 2013.

The court, in a judgement delivered by Justice Abdul Kafarati, said AMCON was morally and legally obliged to perform its responsibilities under the consent judgment issued by the court in a suit marked: FHC/ABJ/CS/ 714/2012 between AMCON (as plaintiff) and Capital Oil (as 2nd defendant).

The judgement was on a suit marked: FHC/ABJ/CS/514/2015 filed against AMCON by Capital Oil to enforce the consent judgment of 2013 which ended the dispute between them over the oil company’s indebtedness to some financial institution, which AMCON took over.

The court equally made an order appointing an independent auditor to ascertain losses incurred by Capital Oil due to failure of AMCON to comply with its obligations under a consent judgement it entered for the parties on June 21, 2013.
AMCON was required, under the consent judgment to restructure Capital Oil’s debt and provide it N16 billion as Trade Finance Facility to revamp its business and to pay its trade creditors.

It was also required to make the sum of N10. 590 billion available to Capital Oil for payment to sundry creditors threatening its business.

On its part, Capital Oil was required to transfer assets worth N78.55 billion to AMCON to qualify for the over N26 billion payment by the Corporation.

Justice Kafarati revealed that he was convinced from evidence before the court that Capital Oil fulfilled its obligation under the consent, hence he delivered the judgement.

Source: The Will



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