On Sunday, 23rd August, 2020, it was reported that assets belonging to the chief promoter of Jabfal Enterprises Limited, Mr Joshua Faleye, were repossessed by The Asset Management Corporation of Nigeria (AMCON) following a disclosure of debt of over N4...
jabfal, assets, enterprises, amcon, management, debt
On Sunday, 23rd August, 2020, it was reported that assets belonging to the chief promoter of Jabfal Enterprises Limited, Mr Joshua Faleye, were repossessed by The Asset Management Corporation of Nigeria (AMCON) following a disclosure of debt of over N440 million naira.
The sudden move to seize the assets indefinitely was effected after the order of Justice C.J. Aneke of the Federal High Court, Lagos division. Through it's receiver, Benson Reeds Legal Practitoners, AMCON acquired two properties belonging to Mr Joshua following the order by the Federal High Court. It has been reported, however, that AMCON has made sure that prior to seizing the properties, that it had met all other due processes for effective enforcement and repossession.
Furthermore, the Head of Corporate Communications Department at the Assets Management Corporation of Nigeria, Jude Nwauzor, had made it crystal clear following questioning, that in securing the credit facilities (loan and overdraft), the respondents, which is Jabfal Enterprises Limited, pledged the properties belonging to Mr Joshua Faleye and executed deeds of legal mortgages in that regard, as collateral securities.
Apparently, in a public statement made by the court, the assets it took over include properties situated 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.
Similarly, a continued quoting from the court statement said, “The case between AMCON and Jabfal Enterprises Limited and its promoter has 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 10 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.”
Also reading from the statement, it was revealed that at a particular time in 2010, the Assets Management Corporation of Nigeria by virtue of a loan purchase and limited service agreement effective on the 31st of December, 2010, was issued the absolute rights, title, interest, benefits emanating and connected with the term loan and overdraft due for the debtors to pay, having become due and payable. The statement also showed that Jabfal and its promoters failed, neglected and refused to pay the debt of over N440 million naira to AMCON, thereby attracting the unfortunate event of a repossession of their assets.
The Assets Management Corporation of Nigeria spokesperson reported that although Jabfal Enterprises Limited failed to pay the outstanding balance on the term loan and overdraft of N290.255m and N126.485m respectively, the debtors were still in possession of the properties used as collateral for the credit facilities until Justice Aneke’s order from the Federal High Court, Lagos, which had enabled them the legal power to confiscate two properties belonging to the debtors.