Court restrains AMCON over eligible bank assets of Stanbic-IBTC

Can the Asset Management Corporation of Nigeria (AMCON) unilaterally reprice the Eligible Bank Assets it procured form a financial institution? This is an issue a Federal High Court is expected to determine in a suit filed by Stanbic-IBTC bank against AMCON.

Meanwhile, the trial judge, Justice Chuka Obiozor at the weekend refused to set aside an ex parte order maintenance of status quo it made on August 8, 2019 in suit FHC/L/CS/1360/2019 filed by the bank against the Managing Director of AMCON.

Justice Obiozor made the order ex parte order base on the motion filed by the Stanbic IBTC bank in court on August 5, 2019 through its Lead Counsel, Prof Fabian Ajogwu SAN, to determine whether the Asset Management Corporation of Nigeria (AMCON) can unilaterally re-price the Eligible Bank Asset (EBA) it purchased from Stanbic well over 5 years after.

Ajogwu said that AMCON was looking to reprice the EBA after 5 years and claw back the sum of N5.7 Billion from Stanbic, claiming that the collaterals of Lonestar Drilling Nigeria Ltd were overvalued.

On August 8, 2019,  Justice Obiozor ordered the parties to maintain status quo and adjourned the matter to August 22, 2019 for the hearing of the Motion on Notice.

But on the due date,  AMCON through its Counsel, Mr. Francis Agbu, SAN approached the Court to set aside the order of Status quo made on August 8, 2019.

Justice Nicholas Oweibo, a vacation judge ruled otherwise and said that the Order cannot be discharged since a motion to discharge the order have not been served on the Plaintiff.

The judge opined that the administration of justice will be better served if the plaintiff is served with the motion, so that it can be heard on its merit.

The Court thereafter adjourned the the case to September 10, 2019 for hearing of all applications.


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