Business

AMCON seizes G. Cappa property over N1.2 Billion debt

Published

9 years ago

August 31, 2015

G. Cappa, Plc, a Building and Civil Engineering Construction Company in Nigeria, has lost the ownership of its property situated at 8 Taylor Road, Ebute Metta, Lagos, to Asset Management Corporation of Nigeria (AMCON) over unpaid N1.2 billion debt.
The seizure of the property by AMCON was approved by Justice Chukwujekwu Aneke of the Federal High Court pending the hearing and determination of a substantive debt recovery suit filed by AMCON.
The Justice restrained G. Cappa from dealing with the property in any form and ordered that accounts maintained by the company in any bank or financial institution in Nigeria should be frozen.
An affidavit by Victor Igabor of AMCON’s Credit Directorate stated that, sometime between April 28, 2000 and March 2002, G. Cappa applied for and was granted a loan of N880 million by United Bank for Africa.
And the lawyer representing AMCON, Chuks Okeugiri, explained that the construction company secured the loan with the property situated in Ebute Metta but failed and neglected to liquidate its indebtedness, leaving an outstanding balance of more than N1.2 billion.

AMCON said several appeals made to G. Cappa to either pay or restructure the loan were not heeded, prompting it (AMCON) to file an appeal to recover the debt.
AMCOM is now claiming the sum of N1,207, 296,646.45 from G. Cappa, with interest at the rate of 21 percent from June 4, 2014 until judgment is delivered and thereafter.
The corporation is also demanding a 10 per cent penalty on the loan until final liquidation of the judgment sum.
But Counsel for G.Cappa, Taiwo Taiwo, denied that the company had failed to liquidate its indebtedness to UBA, saying that there was a discrepancy over the exact amount of the company’s indebtedness to UBA.
He added that it was the discrepancy that delayed the company from offsetting its debt.
Justice Aneke adjourned the hearing of the substantive suit till October 6, 2015.
AMCON, is a federal government agency saddled with the responsibility of handling toxic loan in order to stablise the financial sector.

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