CHAIRMAN of Capital Oil and Gas Industries Limited, Ifeanyi Ubah has sued the Asset Management Company of Nigeria (AMCON) and its Managing Director, Ahmed Lawan Kuru, over the alleged violation of terms of a consent judgment they all entered in 2012 over Capital Oil’s N81billion debt.
In a fresh motion for committal brought against AMCON and Kuru before the Federal High Court, Abuja, Ubah and his company stated that as a way of resolving the dispute between them and AMCON over N81billion debt owed to banks and business associates, parties entered into a consent judgment in 2012 part of which terms allows AMCON to run Capital Oil for two years, pay out all its debts and inject N16billion into the company to enhance its liquidity.
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Ubah and Capital Oil added that after they had met their terms of the judgment, which saw the businessman handing assets valued at N78billion to AMCON, but the company (AMCON) has failed to meet its terms of the judgment and was allegedly plotting to appoint a receiver manager for Capital Oil with the intention of winding it up.
ASSET Asset Management Corporation of Nigeria, AMCON, had in 2012 stepped into embattled Capital Oil and Gas Limited, taking over its financial operations. The move came after AMCON management met with Mr Ifeanyi Patrick Ubah with both parties agreeing to opening of Capital Oil depot in Lagos and AMCON overseeing its finances.
And in November, 2014, the Asset Management Company of Nigeria (AMCON) reinstated Mr. Ifeanyi Ubah as the Managing Director/Chief Executive Officer (CEO) of Capital Oil and Gas (COG), nearly 17 months after it took over the assets and management of the oil firm following a controversial loan deal involving Access Bank and Coscharis Group.
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The oil marketer incurred AMCON’s wrath after the Chairman of Coscharis Group, Mr. Cosmos Maduka, explained that his foray into fuel business with Capital Oil was necessitated more by compassion to bail the young Ubah out of a credit crunch crisis as most Nigerian banks had refused to advance him any more facilities for his business due to his failure to honor outstanding obligations. Vibrant Venture Limited was subsequently appointed as a warehousing agent for the joint venture partnership.
Maduka claimed after the joint venture deal was sealed, that both companies were able to secure a loan from Access Bank for the importation of Premium Motor Spirit (PMS), but alleged that Ubah and his company breached the terms of the deal by engaging in the diversion of the imported products and other fraudulent activities which had marred the ability to execute the joint venture deal as a profitable establishment.