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Home » » N65bn debt: AMCON reinstates Ubah as Capital Oil CEO

N65bn debt: AMCON reinstates Ubah as Capital Oil CEO





LATEST UPDATE: N65bn debt: AMCON reinstates Ubah as Capital Oil CEO



The Asset Management Company of Nigeria (AMCON) yester­day reinstated Mr. Ifeanyi Ubah as the Managing Di­rector/Chief Executive Of­ficer (CEO) of Capital Oil and Gas (COG), nearly 17 months after it took over the assets and management of the oil firm following a con­troversial loan deal involving Access Bank and Coscharis Group.

The reinstatement of Ubah puts to rest the close to two years management of the com­pany by AMCON.

AMCON, in a statement an­nouncing the return of COG to Ubah and signed by its Spokesman, Kayode Lambo, said it has reached an ami­cable settlement with him of all pending legal disputes be­tween the parties.

‘‘Consequent upon this settlement, Ubah will be re­suming his role as the Man­aging Director/CEO of COG. His resumption as MD/CEO of COG brings to an end the management of COG by AM­CON.

“This is in accordance with the terms of settlement as agreed by both parties that the loan be serviced as per the judgement of the Federal High Court.

“This settlement is in line with AMCON’s roles as a resolution vehicle to help stabi­lise and revitalise the Nigerian banking system and econo­my,’’ AMCON assured.

The oil marketer incurred AMCON’s wrath after the Chairman of Coscharis Group, Mr. Cosmos Maduka, ex­plained that his foray into fuel business with Capital Oil was necessitated more by compas­sion to bail the young Ubah out of a credit crunch crisis as most Nigerian banks had refused to advance him any more facili­ties for his business due to his failure to honor outstanding obligations. Vibrant Venture Limited was subsequently ap­pointed as a warehousing agent for the joint venture partner­ship.

Maduka claimed after the joint venture deal was sealed, that both companies were able to secure a loan from Access Bank for the importation of Premium Motor Spirit (PMS), but alleged that Ubah and his company breached the terms of the deal by engaging in the diversion of the imported products and other fraudulent activities which had marred the ability to execute the joint venture deal as a profitable es­tablishment.

Recall that AMCON had in 2012 shut the premises of Capital Oil and Gas follow­ing an Abuja Federal High Court ruling that it should take over the company’s proper­ties and assets over an alleged N48.014 billion debt. Though the change of management by AMCON was not effected un­til June 21, 2013

The closure of the compa­ny’s 196-million-litre capacity storage tank often used by the Nigerian National Petroleum Corporation (NNPC) for prod­ucts storage had hampered products distribution across the country then

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