N440m Debt: Court Orders AMCON To Take Over Assets Of Jabfal Enterprises

Following the order of Honourable Justice C.J. Aneke of the Federal High Court, Lagos division, the Asset Management Corporation of Nigeria has taken over assets belonging to Mr. Joshua Abiodun Faleye, the Chief Promoter of Jabfal Enterprises Limited over an indebtedness of over N440m.

In total compliance to the order and having met all other due processes for an effective enforcement, AMCON said it had taken over possession of two properties through its Receiver – Benson Reeds Legal Practitioners.

The assets the government agency took over include properties located at Plot 9, Block XIV Okuta Elerinla Residential Estate, Akure, Ondo State and Plot 3, Block IV, State Residential Layout, Okuta Elerinda, Akure, Ondo State.

The case between AMCON and Jabfal Enterprises Limited and its promoter have been a protracted litigation issue since the loan was purchased during the first and second phases of Eligible Bank Assets purchase from Unity Bank Plc and Intercontinental Bank (now Access Bank Plc.) almost ten years ago.

Since then, AMCON has offered the obligor a good measure of olive branches and explored all avenues to resolve the matter amicably, but the obligor, and his company, Jabfal Enterprises Limited have remained recalcitrant and unwilling to repay the huge debt to the Corporation.

 
Confirming that AMCON had taken over the assets in line with the order of the court, Jude Nwauzor, Head, Corporate Communications Department at AMCON said, “Yes, we enforced on the properties as ordered by the court.”

Providing more insight into the case, Nwauzor said in securing the credit facilities (the term loan and overdraft), the respondents had pledged as securities the properties belonging to Mr Joshua Abiodun Faleye and executed deeds of legal mortgages in that regard.

According to him, sometime in 2010, AMCON by virtue of a loan purchase and limited service agreement effective December 31, 2010, was assigned the absolute rights, title, interest, benefits arising and connected with the term loan and overdraft due for the debtors to pay having become due and payable and they (Jabfal and its promoters) failed, neglected and refused to pay the debt to AMCON.

 
The AMCON spokesperson said despite their failure to pay the outstanding balance on the term loan and overdraft of N290, 255, 896.77 and N126,485, 340.27 respectively, the debtors were still in possession of the properties used as collateral for the credit facilities until Hon. Justice Aneke’s order, which has made it possible for AMCON to takeover the assets.