Shareholders of Arik Air (W3, Lagos) have voiced concern over the apparent depletion of the airline's assets while it is in receivership and the receiver manager's failure to publish audited accounts as required by the Nigerian Federal High Court in Lagos on March 31, 2023, according to thetransporteronline24 Nigeria.
On February 8, 2017, the Asset Management Corporation of Nigeria (AMCON) declared Arik Air to be in receivership due to debts totaling NGN141 billion (USD186.6 million). Arik's shareholders, however, noted in a statement that this represented less than 5% of the airline's USD3.7 billion market worth in 2014. "We would like to point out that before AMCON placed Arik Air into receivership, Deloitte of London evaluated the company at USD 3.7 billion. This valuation [was] the result of the valuers' visits to all international stations in 2014, including the Nigerian base, and months of forensic examination of all assets." The central bank of Nigeria, the AMCON management, and the minister of finance allegedly received the Deloitte report in 2014.
In order to determine the extent of the airline's debt, Arik Air shareholders demanded in 2021 that AMCON file a statement of affairs of the firm through the airline's vice chairman, Aniette Okon, "but AMCON simply refused and resorted to name calling."
It's interesting that, more than 80 days after the Federal High Court issued its ruling in suit number FHC/L/CS/1175/2021, ordering the receiver-manager and AMCON to file the audited accounts of Arik Air since the receivership (a period of six years) with the Corporate Affairs Commission (CAC) within 14 days of the judgment, the parties have yet to comply with the ruling.
As previously mentioned, the Federal High Court on March 31, 2023, also blocked the transfer of the airline's assets to Super Bravo Limited and NG Eagle (Lagos), two envisioned new national carriers. AMCON declared at the time that it will exercise its right to appeal the judgment.
Johnson and Mary Arumemi Ikhide, the co-founders of Arik Air, sued receiver-manager Omokide Kamilu Alaba, AMCON, the Nigerian Civil Aviation Authority (NCAA), NG Eagle, and Super Bravo in 2021 (No FHC/L/CS/1175/2021), accusing them of transferring or attempting to transfer Arik Air assets to NG Eagle and Super Bravo in violation of Section 553 of the Companies and Allied Matters Act 2020.
In return for a share of the airline's ownership, AMCON acquired Arik's non-performing loans. According to Vanguard News, after six years of AMCON, the airline reportedly became moribund. The receiver-manager, however, has linked Arik Air's failure to difficulties it experienced before AMCON took control, claiming that because of the airline's exposure to debt, there was a lack of operational cash, which limited its capacity to effectively utilize its equipment.
Arik Air has also lately been in the news because of a dispute involving the purchase and destruction of a CRJ1000.
Arik Air opted not to respond. Since the dispute between Arik Air, the receiver-manager, and AMCON is still continuing before the Nigerian Court of Appeal and Supreme Court, an AMCON spokeswoman likewise declined to comment.
