Why we lent Arik N20bn – AMCON

The Assets Management Corporation of Nigeria (AMCON) has reiterated that its interventions in some aviation companies including Arik, Aero, among others was not to delve into aviation business.

It said its role in those companies was to stabilize them to be able to repay their loans to banks as AMCON is only a cost recovery company.

The Senior Vice-President, AMCON and Head Receivership Support, Arik Air, Mr. Omokide Kamilu, stated this during the airline’s Trade Sales Forum in Lagos.

He said prior to the take-over of Arik by AMCON, it gave the airline several opportunities to repay its debts including an additional lending of N20bn to enable it revive.

Kamilu, who represented the Managing Director of the airline, Capt. Roy Ilegbodu, disclosed that the airline has now stabilized with its fleet increased to 15 and now airlifts 5,000 passengers daily from 1,000 when it was taken over. He said Maiduguri route has been reopened while Bauchi would also follow suit soon.

It would be recalled that AMCON took over the management of the airline in February 2017 and appointed Ilegbodu as the new MD and suspended all its international operations and cut back its domestic services.

He said: “You know AMCON did not just jump into Arik. We bought these loans - 20112012. After buying the loans, we actually gave Arik over N20bn additional lending to help them rejuvenate.

He disclosed that the Maiduguri route which was suspended earlier had been reopened, adding that the airline would also reopen Bauchi in partnership with the state government.

On the international routes including London, JFK-New York and Johannesburg which were suspended, Ilegbodu said plans were ongoing to reopen them soon.