04 October, 2012

Otedola forfeits properties in Lagos, Abuja over N141bn debt


Controversial business mogul, Mr. Femi Otedola, has signed off some of his choice properties and shares in African Petroleum, AP, to defray the N141bn debt owed the Asset Management Company of Nigeria, AMCON.

The properties include residential and commercial developments in Lagos, Port Harcourt and Abuja as well as tank farms, jetties and petrol stations.
The deal, announced by AMCON last week, came shortly after the Central Bank of Nigeria, CBN, technically barred banks from further granting loans to 133 companies and 419 company directors who owed banks amounts over N5bn, saying such banks would be made to make full provision for such loans in addition to other sanctions.
The list included Otedola’s company, Zenon Petroleum and Gas; Arik Air, MRS Oil, Falcon Securities and Capital Oil and Gas.
Under the terms of the AMCON deal, Otedola will hand over some of his properties and an unspecified amount of cash to the asset management company for full and final settlement of the debts.
The original debt totalling N192.4bn was previously owed five banks – Access Bank Plc, UBA Plc, Zenith Bank Plc, FCMB Plc, and Guaranty Trust Bank Plc – which was bought by AMCON as part of efforts to stabilise the banking sector.
Otedola’s move became necessary to ensure free flow of credit to his businesses as he remains a key importer of petroleum products and a consortium, including Forte Oil, which he controls, had recently been named as a bid winner for one of the power generating stations.
But the House of Representatives said it would probe the debt settlement deal on the grounds that it was allegedly done secretly and was, therefore, unacceptable.
Although it was not immediately clear which particular set of properties Otedola released to AMCON, court papers filed earlier in respect of a lawsuit by the businessman challenging the level of indebtedness to the banks showed that he controls a sizable real estate portfolio, which had been pledged as collateral to the banks.
The properties include his private home located at 23, Mekwen Road, Ikoyi, Lagos; 5, Tiamiyu Savage Street, Victoria Island, Lagos; Zenon Place, 13, Walter Carrington Crescent, V/I Lagos; Zenon Apartments located at 12, Temple Road, Ikoyi; Zenon Court, 3b, Agodogba Avenue, Parkview Estate, Ikoyi; Zenon Jetty, 13, Walter Carrington Crescent, V/I, Lagos, and Zenon Gardens at 872, Ozumba Mbadiwe Avenue, V/I, Lagos.
Others are two Zenon Diesel Direct Stations located in Lagos; Zenon House, 2, Ajose Adeogun Street, V/I; Zenon Towers, 1, Cooper Road, Ikoyi; a building at 8a, Ogalade Close, V/I; Blue Waterfront Scheme, Lekki, Lagos; Plot 9, Block 80, Off Emma Abimbola Cole, Lekki Lagos; 18, Ladipo Oluwole Street, Apapa, Lagos; Zenon Loft, 175, Sani Abacha Way, GRA, Phase 11, Port Harcourt; Plot 100, Obudu Street, Off Aso Drive, Asokoro Abuja; and 1, Madiana Close, Wuse 11, Abuja.
Otedola had also pledged the Zenon Petroleum Terminal 1 and 2 at Ibafon, Apapa, Lagos and Plot C21, Industrial Road, Amuwo Odofin in addition to large number of shares in AP, Zenith Bank Plc, MRS Oil and Mobil Oil.
In rejecting the settlement with AMCON, the legislators said they would constitute a committee to investigate the amount and the assets transferred to AMCON.
They said that it was “curious that AMCON, being a government establishment which is under the purview of the National Assembly, could do that without the knowledge of the House.”
There are, however, indications that the legislators may be trying to get back at Otedola for his role in $620,000 Farouk Lawan bribery saga.
The businessman’s revelations of how he paid money to Lawan triggered a major scandal and Lawan’s arrest by the Economic and Financial Crimes Commission, EFCC.
Lawan was heading the House of Representatives Ad hoc Committee on Fuel Subsidy, to ensure the removal of his companies from the list of those indicted for wrongdoing in the fuel import programme.
AMCON Managing Director, Mr. Mustapha Chike- Obi, however, said that both parties were satisfied with the settlement and that he would not be used as a tool by the National Assembly to fight Otedola.
Speaking with National Mirror yesterday, he said: “The settlement with Femi Otedola started six months ago. Two valuers were engaged and there were negotiations back and forth, it did not happen yesterday,” he said.
The AMCON boss said that it was unfair for people to speculate on the issue of valuation of the forfeited properties when they had not seen the terms of the settlement, saying that the recovery of the properties was the best action that could be taken in the circumstances.
He said: “If a man owes and he says that he cannot pay, what do you do? You take his assets. That is all we can do legally and that is what we have done. We cannot take his blood or take his children, it is just the assets. “The banks had failed to collect the loans, that is why they came to us. I have restructured 900 loans, including Arik Air which was a year ago, why was the House of Representatives not interested in that?
“I will not be used as a tool to fight Femi Otedola, we went to the board of directors and they approved the transfer and we are all happy with the agreement.” Chike-Obi, however, said that other companies had approached AMCON for settlement of the debts but that the process would take between three and six months.
“Others have approached us but it is long process, I am not likely to have any announcement in less than three months,” he said, when asked if other debtors had expressed willingess to settle.

Source: National Mirror

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