$200m debt: AMCON finally takes over Aero; gets new MD, board

Indications at the weekend were that the Assets Management Corporation of Nigeria (AMCON), has assumed ownership of Aero Contractors, the nation’s oldest surviving and second largest airline over debts estimated at about $200 million (about N32 billion).

The debt, originally owed to Nigerian banks were part of what the corporation acquired as part of its mandate contained in its enabling Act of 2010, to purchase toxic debts of banks and free their balance sheets.

The takeover was confirmed Sunday evening to **Daily Independent** on telephone by Mustafa Chike-Obi, managing director of AMCON, who said the take-over of Aero’s operations was effected a month and half ago.

He said Aero as presently constituted has a new chairman, MD and board, following AMCON’s 60 per cent equity stake in the embattled airline.

In spite of this, he assured that Aero will remain in business and continue its growth, even as a reliable source told our correspondent of plans underway to liquidate another major carrier by AMCON very soon.

The liquidation, it was learnt, may not be on connected with the plan of the Federal Government to reestablish another national carrier in the last quarter of this year.

A pilot who spoke under the condition of anonymity said Aero workers were already aware of the development before the eventual take over, even as Obaro Ibru, (who until the takeover was MD) did not take several calls to his mobile phone.

Also, Aero’s Media Consultant, Simon Tumba, would not confirm the development when our correspondent called him on the issue, as he said that he has not been briefed.

“I’m not aware of anything of such,” he said.

Aero, the oldest airlines in Nigeria was established in 1959 and it has 16 aircraft in its fleet with 14 destinations in the country and the West African region.

 

Source: Daily Independent