Asset Management Corporation of Nigeria, AMCON, said weekend it has taken over Bao Yao Futurlex Iron & Steel Company Limited in Abuja and Bao Yao Huan Jian Iron & Steel, Calabar, Cross River State, due to failure to repay N3.6 billion debt.
In a statement announcing the takeover, the corporation said: “Following the order of Hon. Justice B.F.M. Nyako of the Federal High Court The order therefore mandates AMCON to take over all the assets of Bao Yao Huan Jian Iron & Steel Company Limited promoted by Mr Shen Yaozhang and General Idris Garba retired over a staggering indebtedness of over N3billion.
“In compliance to the court order AMCON through Mr. Robert Ohuoba, the Receiver who also received protective orders from the court has taken possession of Bao Yao Futurlex Iron & Steel Company Limited, Abuja. The assets, which are now under AMCON include Bao Yao Futurlex Iron & Steel Company Limited, Abuja as well as Bao Yao Huan Jian Iron & Steel Company Limited, Calabar belonging to the obligors.
“The order also froze all accounts of the companies in any financial institution in the name or belonging to the defendants, which include Bao Yao Futurlex Iron & Steel Company Limited; Bao Yao Huan Jian Iron & Steel Company Limited, Mr Shen Yaozhang, Mr Ji Yunfeng and Gen. Idris Garba, retd, and all financial institutions served with the order.
“The court also granted AMCON possessory order over all that piece of land consisting of buildings/factory and situated at Esuk Utan Village, Calabar, Cross River State, more particularly described as Plot A23 – A30, Calabar Export Processing Zone; All those chattles consisting of five Oil Tank Barges and seven Tug Boats etc.; as well as all piece of land consisting of an acre and situated at Kaduna in the Kaduna Local Government Area, more particularly described as Plot No. 13, Idoma Close, amongst others assets.
“Justice Nyako also sanctioned AMCON’s appointment of Mr. Robert Ohuoba, as Receiver over the business and stock in trade and over all fixed and floating assets of both Bao Yao Futurlex Iron & Steel Company Limited and Bao Yao Huan Jian Iron & Steel Company Limited wherever they may be found within the jurisdiction of the Federal High Court. The Court also directed the Inspector-General of Police and the Commissioner of Police, in all the state of the federation to assist and protect the Bailiffs of the Federal High Court and the Receiver, Mr. Robert Ohuoba to carry out the takeover.”
Speaking further on the development, Jude Nwauzor, Head, Corporate Communications, AMCON said, “We saw it coming because the said debt is long overdue. Like we have always said, going to court with obligors is usually the last resort for us as a corporation. Whenever you see us take over company as is the case in this instance, it means we must have patiently tried to resolve the matter without going to court.
“Taking over the firm as directed by the court is an indication that all efforts by AMCON to get the obligor to amicably repay the indebtedness have proved abortive. If you have exhausted all avenues of peaceful resolution, there is no other option available to the AMCON than to commence enforcement action against Bao Yao Futurlex Iron & Steel Company Limited as well as Bao Yao Huan Jian Iron & Steel Company Limited as directed, which is also provided under Section 49-52 of the AMCON Act.”