5 Facts About AMCON’s Takeover Of Sen. Ben Murray Bruce’s Companies

Social media is abuzz following a disclosure on Thursday morning that AMCON had been granted a court order to take possession of Silverbird Galleria as well as other businesses belonging to Senator Ben Bruce.

Reactions have trailed the news, with some going as far as to call it a witchhunt while others say the Senator should pay his debts. Before you weigh in, here are some simple things you should know.

The Asset Management Company of Nigeria (AMCON) was set up by Nigeria’s Central Bank in 2010 to forestall an impending financial crisis primarily driven by banks having huge portfolios of bad and non performing loans.

If that is too complex, the simple explanation is that Nigerian banks had lent money to businessmen who didn’t pay back and some of these loans were huge!

To save the financial sector from collapse, AMCON would buy these loans from the Banks at a discount. For example, if Ibrahim was owing N55 billion to First Bank, AMCON might buy that loan from the bank at N30 billion (providing badly needed cash for the bank) and then re-negotiate with Ibrahim on how the loan would be paid.

Senator Ben Murray Bruce is said to have obtained a loan facility from Union Bank a little more than ten years ago and the loan was supposed to have a tenure of two years. Somehow, the common sense Senator was unable to pay back within the period and now AMCON has bought that no performing loan from the bank.

AMCON secured an order from a Federal High Court in Abuja to take over Ben Murray Bruce’s possessions.

Will AMCON close Silverbird Galleria?

No! AMCON will simply appoint a caretaker manager to run Silverbird Galleria in the hopes of making back the amount owed (11 billion), the shops at the Galleria will not be sold if rents are still valid.

Despite all of these, the most likely outcome is that Silverbird Galleria and all Murray Bruce’s other businesses will likely be sold because, truth be told, N11 billion is a lot of money!

 

 

1 COMMENT

  1. There goes the last of the opponents!
    The coast is clear now for the smooth sail of plundering, massacre and stealing of the nations resources.
    Rejoice o Nigerians! For hence, thou shalt serve and serve the Sons of Futa Jalon!