18th June, 2018
Akin Kuponiyi
A limited liability company, Euro Global Foods and Distilleries Limited has reached amicable settlement with the Asset Management Corporation of Nigeria AMCON to settle out of court a debt of N2.25 billion.
Euro Global Food and Distilleries company was alleged to have had banking relationship with First City Monument bank which culminated in the granting of loan facility to the company.
The loan was subsequently transferred to AMCON and the outstanding balance as at April 30,2017 was N2,250,937,793.87.
AMCON instituted this suit against the company to recover the outstanding balance. The parties in pursuit of their mutual desire to amicably resolve the dispute between them have negotiated inter parties and agreed on the following terms and conditions in settlement of this matter.
AMCON has agreed to accept a concessionary payment from the company in the sum of N1,565,291,585.44 in full and final settlement of the company ‘s obligation to AMCON.
The company acknowledged its indebtedness to AMCON whilst AMCON acknowledged that the company, as at 24th July, had made a total repayment of the sum of N750,291,585.44 to AMCON to reduce its indebtedness.
Under the agreement, the company shall in addition to the sum of N715,291,585.44 pay to AMCON the sum of N850,000,000.00 “restructured” at an interest rate of 8% per annum, the said sum is to be liquidated in 24 monthly installment each in the sum of N38,447,557.00 for the first 23 months and the sum of N38,230,436.00 for the 24th month, representing full and final liquidation of the company’s indebtedness to AMCON. Each of the above installment shall be due and payable on the last day of each month.
Upon full payment of the restructured amount by the company to AMCON, the AMCON lien over the company’s First City Monument Bank shares of 133,462,564 units and all other accrued bonus shares thereafter shall cease. The shares with accouterments from year 2018 will then revert to the company Euro Global Food and Distilleries Limited forthwith.
Upon full payment of the restructured amount by the company to AMCON, AMCON shall cause to be written a letter discharging the company from all claims and obligations in respect of the instant facility -the subject matter of this suit.
The company’s status in the credit Risk Management System will be reversed by AMCON upon the adoption of the terms of settlement. In the event that the company however thereafter defaults in its repayment obligation to AMCON for two consecutive months, AMCON shall then reverse the company’s credit status and the facility shall accordingly be subscribed as a non-performing loan.
The settlement agreement between the two parties shall be entered as the judgement of the court.
The agreement was signed by the group head of Credit, Joshua Ikioda and the Company Secretary, Fains Tauo on behalf of AMCON, while a Director, Ashok Kumar Manhnnani and Project Manager, Meenakshisun Daram signed on behalf of Euro Global Foods and Distilleries limited.
The counsel to AMCON, Ayo Osifeso and Euro Global Foods and Distilleries Company’s counsel, Mamman Osuma SAN also signed the agreement.