Court restrains AMCON from selling IBEDC

The federal high court in Lagos has restrained the Asset Management Corporation of Nigeria (AMCON) from selling the Ibadan Electricity Distribution Company (IBEDC) Plc.

AMCON had taken over the management of the IBEDC in January 2022 over insolvency and loan default. 

The takeover followed the judgement of a federal high court on September 8, 2021, which granted an order in favour of AMCON as receiver/manager of Integrated Energy Distribution and Marketing (IEDM) Limited, IBEDC’s core investor, over a default in the loan service agreement.

However, while ruling on an interlocutory injunction sought by IBEDC and 10 other defendants in the suit, Chukwujekwu Aneke, the presiding judge, stopped AMCON from “alienating, selling or disposing or transferring the IBEDC pending the final determination of the suit before it”. 

The defendants in the matter are Integrated Energy Distribution and Marketing Company Limited, Tunde Ayeni, Olusola Ayandele, and personal legal representatives of the estate of Idahosa Okunbo. Others are Akere Ayanwola, Kayode Ojutiku, Folu Olusanya, Aliyu Ibrahim, Usman Mohammad, Abubakar Aminu and IBEDC.

The defendants had asked the court to determine whether the plaintiff was entitled to remain in possession of, manage and exercise all the powers of a receiver or manager on all the first defendant’s assets.

Dele Adesina, counsel to the applicants, had in November 2022 alleged that AMCON intends to dispose of IBEDC despite “the issue for determination or subject matter of settlement initiated by both parties”.