AMCON’s Bid to Return Arik Air to its Founder Hindered by Unresolved Debt
New revelations have surfaced regarding the conflict of interest between the shareholders of Arik Air and the Asset Management Corporation of Nigeria (AMCON). While both parties have shown efforts to resolve their differences, the outstanding debt of over N240.3 billion remains a major obstacle.
AMCON took over Arik Air in 2017 due to mismanagement and significant debt, but the recent court ruling challenged AMCON’s transparency and asset transfer practices. The major shareholders of Arik Air have made multiple attempts to settle the debt, including proposing payment plans and introducing potential investors, but these efforts have been unsuccessful so far.
AMCON has cited the shareholders’ failure to provide proof of funds and meet settlement expectations as reasons for not accepting the proposals. The receivership of Arik Air in 2017 revealed a dire financial situation, with unpaid salaries, outstanding debts to suppliers and maintenance organizations, grounded aircraft, and various other operational challenges.