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AMCON V Shebah E and P: Parties Meet To Resolve Issues

Debtors & Recovery	2978 VIEWS
Debtors & Recovery
2978 VIEWS

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Monday, September 09, 2019 / 11.00AM / By News/ Header Image Credit: AMCON & Shebah

Parties to the ongoing litigation between Asset Management Corporation of Nigeria (AMCON) and Shebah Exploration and Production (E&P) Company Limited met last week to discuss how to amicably resolve the various issues that led to recourse to the courts.

The meeting which held at the AMCON head office had in attendance representatives of the obligor (Shebah Exploration and Production Limited), ABC Orjiako (the Guarantor of the loan), the representatives of the lenders Afrexim Bank, Access Bank and Polaris Bank which were parties to an Order of the Federal High Court made on August 15, 2019, representatives of AMCON, and the Receiver/Manager.

It was learnt that the respective parties were pleased with the outcome of the meeting and were prepared to resolve the matter in line with resolutions and commitments made within the proposed terms of settlement. It was also learnt that the Defendant had enumerated plans to part pay the debt to creditors prior to the AMCON intervention.

With this development negotiations have commenced on a repayment schedule acceptable to the lenders. With the recent negotiations and prospective loan work out agreement, ABC Orjiako, guarantor to the Shebah Facility, who had commited to pay $68million of his personal money would be part of the new debt work out plan.

The agreed first tranche of payment is expected to be made latest on September 18, 2019.