AMCON takes over Gateway Portland Cement

The Asset Management Corporation of Nigeria (AMCON) has taken over Gateway Portland Cement Limited.

This followed an injunction which the federal high court, Abeokuta, granted against the company on Friday.

Charles Adeogun-Phillips, AMCON’s receiver, has taken possession of Gateway Portland Cement Limited factories and facilities located in Abeokuta and Mowe areas of Ogun state.

In his ruling, A.T. Mohammed, the presiding judge, restrained Gateway Portland Cement Limited and the promoters “whether by themselves, their agents, privies, or whosoever howsoever” from moving into the firm.

Mohammed also ordered them not to withdraw money from any bank or financial institutions transacting business with the cement company, pending the hearing and determination of the suit to be filed by the applicants for recovery of its outstanding debts.

The order also restrained the company from interfering with, obstructing or frustrating the receiver appointed by AMCON in performing his duties.

The judge also directed Gateway Portland Cement Limited to deliver all the charged assets of the company in their possession forthwith to the receiver appointed by AMCON.

To ensure compliance to the court order, Mohammed directed the inspector general of police, assistant inspectors general of police and commissioners of police in charge of any location where the assets of Gateway Portland Cement Limited might be found to assist the bailiff and Adeogun-Phillips, in the enforcement of the order.

The company’s debt profile is around N3billion.

Under the current management team led by Ahmed Kuru, managing director, AMCON has said there would be no rest for debtors of the corporation.

“This remains the only way AMCON mandate could be realised within the timeframe of the assignment and in the interest of the country’s economy,” Kuru had said.

In a recent statement, Kuru said the corporation had identified 350 obligors’ accounts that represent about 80% of AMCON’s exposure of N2.5 trillion as of December 31, 2016, despite efforts to resolve the huge debts in its portfolio.

In March, AMCON took over Arik Airline over unresolved debts.