The Asset Management Corporation of Nigeria (AMCON) has commenced proceedings to wind down MRS Holdings Limited, owned by prominent businessman and its Managing Director/Chief Executive Officer, Sayyu Dantata, over an outstanding debt of about ₦81 billion.
AMCON announced on Monday that it had initiated proceedings at the Federal High Court in Lagos seeking the compulsory liquidation of MRS Holdings over the company’s alleged inability to settle its outstanding financial obligations.
The suit, marked FHC/L/CP/923/2016, was filed before the Lagos Division of the Federal High Court. MRS Holdings is a major player in Nigeria’s downstream oil and gas sector.
According to AMCON, MRS entered into an agreement with the corporation in February 2014 to restructure its debt, which stood at more than ₦74 billion at the time.
The corporation said the agreement, signed by Dantata and another executive director of the company, contained provisions allowing AMCON to revoke concessions granted under the settlement terms and call in the facility in the event of default.
AMCON further stated that Dantata and one of the company’s directors signed a default indemnity under which MRS Holdings would be required to pay additional interest on any unpaid principal, interest or other sums that became due.
The corporation said the applicable default interest would be determined by AMCON and would run from the date the payment became due until the outstanding amount was settled.
MRS Holdings describes itself as an African conglomerate involved in various aspects of the oil and gas value chain, including oil trading, shipping, storage, distribution and retailing.
The company operates across several African countries, with significant interests in Nigeria and other markets, including Cameroon, Benin Republic, Togo and Côte d’Ivoire.
Among its subsidiaries is MRS Oil Nigeria Plc, which operates a lubricant blending plant at Apapa, modern aviation fuel facilities in Lagos and Abuja, more than 416 retail stations across Nigeria and a fuel terminal in Apapa with a reported capacity of two million litres per day.
Another subsidiary, MRS Oil & Gas Limited, operates a 107-million-litre storage terminal with a jetty at Apapa, an Isolo truck staging area capable of accommodating more than 1,000 trucks, and a loading gantry with 15 loading arms and a reported capacity of 15 million litres per day.
The group also had operations through Corlay in Benin Republic, Togo and Cameroon.
AMCON said the MRS case formed part of its broader efforts to recover outstanding debts from major obligors.
The corporation disclosed that about 400 obligors accounted for more than ₦4.5 trillion, representing approximately 80 per cent of its total outstanding loan balance across more than 12,000 accounts.
It said some of the obligors had remained recalcitrant despite several efforts by the corporation to recover the outstanding sums.
Credit: Breaking Times
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