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Amcon granted right over Assets of Cityscape

The Federal High Court Lagos Division has granted interim orders in favour of Asset Management Corporation of Nigeria (AMCON) against Cityscape International Limited. AMCON has since appointed Mr. Anire Kanyi as Receiver to Cityscape, a major player in the real-estate sector in the country.

Justice A.M. Anka, the presiding judge while granting the order on the application of counsel to AMCON, restrained Mr. Akinwale Akinmusire who is the Managing Director/Chief Executive Office of Cityscape from challenging, interfering with or otherwise obstructing or frustrating the Receiver (Mr. Anire Kanyi) appointed by AMCON over the assets of the company. Cityscape’s indebtedness to AMCON is nearly N6billion.

The Court also mandated the Receiver to take over and preserve all the assets of Cityscape including the property situated at Buena Vista Estate, Lafiaji Town, Lekki, Lagos State and measuring 25.52 hectares being assets covered by Deed of Legal Mortgage dated December 2009 and registered as No. 12 at page 12 in Volume 2014 at the Land Registry, Ikeja (Mortgaged and charged for a loan granted to Cityscape International Limited and guaranteed by Mr. Akinwale Akinmusire).

 The presiding judge said the order was pursuant to section 34, 35 and 48 of the Assets Management Corporation of Nigeria Act 2010, section 6 of the Asset Management Corporation of Nigeria (Amendment) Act 2015 and the Deed of Appointment pending the determination of the Motion on Notice filed along with the motion.

 The order also restrained Cityscape, Mr. Akinwale Akinmusire, Cityscape directors, shareholders, agents, servants, employees and or privies howsoever named or any other person acting under their authority from interfering with or otherwise obstructing the Receiver in the course of his duties as Receiver over all the assets of Cityscape including the aforementioned property situated at Buena Vista Estate, Lafiaji Town, Lekki, Lagos State.

 Justice Anka however ordered all banks and financial institutions, the Central Bank of Nigeria (CBN), agencies, institutions and organisations having custody of Cityscape’s fund to furnish the Receiver or his office the details of any sums standing to the credit of Cityscape within seven days of being furnished with the order.

Recall that 400 obligors of AMCON account for more than N4.5 trillion, which is approximately 80 per cent of the total outstanding loan balance of the Corporation’s over twelve thousand accounts with obligors that have become recalcitrant over time despite obvious efforts of the Corporation.

To deal with the situation however, AMCON recently increased the tempo of its recovery activities using firmer negotiation strategies as well as utilizing the special enforcement powers vested by the AMCON Act to compel some of its recalcitrant debtors especially those that are politically exposed and business heavyweights to repay their debts. The eventual takeover of Cityscape is coming as a result of that initiative.

Source: Daily Trust

September 20, 2016

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