After a protracted legal battle spanning ten years, the Asset Management Company of Nigeria (AMCON) has finally taken over the assets belonging to the chief promoter of Jabfal Enterprises Limited, Joshua Abiodun Faleye, over an indebtedness of more than 440 million.
The action, according to a statement issued by AMCON’s Head of Corporate Communications, Jude Nwauzor, followed the order of Justice C.J. Aneke of the Federal High Court, Lagos Division.
The assets sequestrated by AMCON comprised properties located at Plot 9, Block XIV Okuta Elerinla Residential Estate, Akure, Ondo State and Plot 3, Block IV, State Residential Layout, Okuta Elerinda, Akure, Ondo State.
The case between AMCON and Jabfal Enterprises Limited and its promoter has been a protracted litigation issue since the loan was purchased during the first and second phases of Eligible Bank Assets purchase from Unity Bank Plc and Intercontinental Bank (now Access Bank Plc.) almost 10 years ago.
“Since then, AMCON has offered the obligor a good measure of olive branches and explored all avenues to resolve the matter amicably, but the obligor and his company, Jabfal Enterprises Limited, have remained recalcitrant and unwilling to repay the huge debt to the corporation,’ the statement said.
Nwauzor said the respondents had pledged the properties belonging to Joshua Faleye as securities and executed deeds of legal mortgages in securing the credit facilities (the term loan and overdraft).
The statement observed that sometime in 2010, AMCON, by reason of a loan purchase and limited service agreement effective on 31st December 2010, was assigned the absolute rights, title, interest, benefits arising and connected with the term loan and overdraft due for the debtor to pay, having become due and payable.
The AMCON spokesperson declared that in spite of their failure to pay the outstanding balance on the term loan and overdraft of N290.255 million and N126.485 million respectively, the debtors still held on to the properties pledged as collateral for the credit facilities until Justice Aneke’s order, which had made it possible for AMCON to take over the assets.
Nwauzor added that Jabfal and its promoters failed, neglected and refused to pay the debt to the corporation.