Troubled Assets Resolution in Search of the Best Approach

Description

ABSTRACT

Troubled Assets Resolution-In Search of the Best Approach

Hon. Justice (Dr) Nnamdi Dimgba*, Abayomi Okubote**, Opeyemi Osinubi***, Joseph Onele**** and Yuli Eyesan*****

The critical day-to-day situations the Asset Management Corporation of Nigeria (AMCON) is faced with in ensuring that it fulfills its statutory mandate of efficiently managing and disposing of acquired eligible bank assets (EBAs) are deserving of great managerial as well as consensual and quasi-consensual asset resolution skills. It is against this background that this paper examines the concept of asset resolution with particular regard to consensual and quasi-consensual asset resolution mechanisms. Using AMCON as a case study and drawing relevant examples from Italy, China and Indonesia, this paper makes a case for the best approach to be adopted in asset resolution. The paper concludes that the choice of an “optimal” asset resolution method will continue to surface as topic of considerable debate, but that the “best” approach would be to adopt a mix of resolution options and treat each case as it arises.

Keywords: Asset resolution, consensual asset resolution, quasi-consensual asset resolution, asset resolution mechanisms.

INTRODUCTION

One needs no soothsayer to pinpoint that the critical day-to-day situations the Asset Management Corporation of Nigeria (AMCON) is faced with in ensuring that it fulfills it’s statutory mandate of efficiently managing and disposing of acquired bank assets (EBAs) are deserving of great managerial as well as consensual and quasi-consensual asset resolution skills. This becomes more glaring when one comes to term with the several seemingly difficult commercial choices₁ AMCON is faced with on a daily basis, particularly as it relates with asset resolution.

* Federal High Court, Abuja Judicial Division.
** Doctoral Candidate, Queen’s University, Ontario, Canada.
*** Visiting Attorney, Shearman & Sterling LLP, New York, United States.
**** Graduate Research Assistant, Association of International Petroleum Negotiators, Texas, United States.
***** Associate, Olaniwun Ajayi LP, Lagos, Nigeria.
The paper stemmed out of the paper Hon. Justice Dimgba presented at the 5th AMCON Federal High Court of Nigeria Judges Forum on Effective, Efficient and Expedient Discharge of Constitutional Mandates in September 2016.

1. Compare and contrast the steps takes by AMCON in Silverbird’s case and Capital Oil case. See further Ben Ezeamalu, ‘AMCON seizes Ben Murray-Bruce’s Abuja, Port Harcourt, Lagos Properties’ Premium Times, (Nigeria, 23 June) accessed 16 September 2016; where it was reported that the Asset Management Corporation of Nigeria (AMCON) took over the assets of three companies belonging to Senator Ben Murray Bruce, to wit, Silverbird Galleria Limited, Silverbird Promotions Limited, Silverbird Showtime Limited. It was further reported that AMCON had, by notice of appointment dated April 18 appointed Dr. Muiz Banire SAN as Receiver/Manager over the sprawling assets of the three assets located at 133 Ahmadu Bello Way, Victoria Island, Lagos, Plot No. 1161 (Silverbird Galleria); Central Area Cadastral Zone AOO, Abuja; and Abonnema Wharf Road and Abali Park in Port Harcourt city of Rivers State. See also ‘AMCON Debtors – N5 Billion and above’ This Day (Nigeria, 21 September 2012) accessed 16 September 2016.

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW VOL.9 NO.1