Alleged N81b Debt, MRS Denies Owing AMCON

MRS Holding has denied owing the Asset the Asset Management Corporation of Nigeria (AMCON) N81 billion.

The downstream oil firm said it was not indebted at all to the corporation, insisting that it fully paid a syndicated loan it took from a consortium of local lenders.

In a statement issued yesterday, the MRS Holdings management said: “Our attention has been drawn to a recent publication by the Asset Management Corporation of Nigeria alleging that MRS Holdings Limited is indebted to it in the sum of N81 billion and that the Corporation has instituted Suit No: FHC/L/CP/923/2016 to wind up the company over the inability of MRS to pay the alleged debt.”

AMCON on Tuesday claimed that it began a winding-up proceeding against the company, which is owned by top businessman Alhaji Sayyu Dantata, at a Federal High Court, Lagos, after all its entreaties to the company’s management to settle the debt failed.

But MRS Holdings described the AMCON claims as false. “MRS challenges in the strongest possible terms, the false claim by AMCON that MRS is indebted to AMCON in the sum of N81 billion or any sum at all. The correct position is that MRS obtained a loan from a consortium of banks in Nigeria for a viable project,” the MRS statement said.

The oil firm admitted that the loan was taken over by AMCON, only for the corporation to discover that was being serviced. The corporation, it added, agreed to restructure the loan on agreed terms of N74 billion.

“The said debt has since been fully settled. The terms of settlement was entered as Judgment of Court on 29 June 2015 in Suit No FHC/L/CS/1365/2015. MRS is shocked that in spite of having fully settled the debt, AMCON has decided to re-litigate an already concluded matter. MRS Holdings Limited understands AMCON’s statutory function to recover debts but by no stretch can this mean harassment of companies,” it said.

MRS Holdings further  said: “AMCON has declared a new aggressive debt recovery drive. MRS has no problem with that but this does not give AMCON a licence to embarrass and harass companies. It is not a crime to obtain loans for viable projects. Execution of viable projects leads to job creation and growth of the economy. However, when companies which obtain loans for legitimate businesses are being harassed and embarrassed in the name of aggressive debt recovery, it signals danger for economy growth.”

Continuing, the downstream oil firm said it had taken notice of AMCON’s frivolous recovery cases against many companies, which were dismissed by the courts.

“MRS is taking legal advice to clear its good name and bring necessary actions to seek damages for the embarrassment and damage caused the company’s reputation and goodwill by AMCON’s publication and action,” it said.

The company assured all its customers and business associates that the report will not affect the company and its subsidiaries’ high quality services records, adding that it would seek redress for the damage caused by the publication.

“MRS further assures the general public that MRS Holdings Limited and its subsidiaries will continue to transact their businesses with the highest ethical standards and in accordance with the extant laws of the country,” it said.