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Why AMCON overrun Gateway Portland Cement

For non-performing loan rising to over N3bn, the Asset Management Corporation of Nigeria (AMCON) weekend, took possession of Gateway Portland Cement Ltd. and factories in Ogun State. The said debt had been a subject of litigation for some time now.

In a statement issued in Lagos, AMCON said the possession followed an injunction against Gateway Portland Cement granted by the Federal High Court Abeokuta Division, Ogun State.

According to the statement, AMCON’s Receiver, Mr. Charles Adeogun-Phillips had formally and successfully taken possession of Gateway Portland Cement factories and facilities located in Abeokuta and Mowe areas of Ogun State.

The Court running restrained Gateway Portland Cement and the promoters whether by themselves, their agents, privies, or whosoever howsoever from moving, into the firm.

Other provisions in the ruling include restraining removed manager of the company from withdrawing money from or with any bank or financial institutions that hitherto does business with the cement company excluding in Nigeria 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 and the promoters by themselves, their agents, servants and, or their privies from interfering with or otherwise obstructing or frustrating the receiver appointed by AMCON in performing his duties.

The court further directed the company and the promoters to deliver to the receiver appointed by AMCON all the charged assets of the company in their possession forthwith.

AMCON noted that the only way AMCON mandate could be realised within the timeframe of the assignment and in the interest of the country’s economy was to recover debts owed.