The Asset Management Corporation of Nigeria (AMCON) has given details of how it executed the takeover of Integrated Energy Distribution and Marketing (IEDM) Limited, the core investor of Ibadan Electricity Distribution Company (IBEDC), following a default in a loan servicing agreement executed with Polaris Bank.
Platforms Africa reports that the agency conveyed the change of baton in the electricity firm in a public notice, where it also disclosed that it had appointed Mr. Osayaba Giwa-Osagie (SAN) to take over the entire undertakings, assets of IEDM including shares and interests in related companies and entities, and also monies kept in the 25 banks in Nigeria.
The agency said it executed the takeover of IEDM following a default in a loan servicing agreement executed with Polaris Bank.
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AMCON has pursuant to section 48 and 61 of AMCON Act 2010 been appointed receiver/manager over all the Assets of Integrated Energy Distribution and Marketing Limited as stipulated in the instruments executed in favour of AMCON by virtue of the Loan Purchase and Limited Servicing Agreement executed with Polaris Bank Limited dated 30th November 2018 and a Notice of Appointment of the Receiver/Manager dated August 6th, 2021, which was duly stamped by the Commissioner for Stamp Duties”, the statement read.
It would be recalled that the Nigerian Electricity Regulatory Commission (NERC) had earlier slammed N50 million fine on the power firm for “its failure to secure a refund of an interest free loan the board of IBEDC granted to its core investor group.
The power company had at a press conference in Ibadan last August revealed that it has clean financial bill of health, just as it announced billions of naira investment on business expansion.
The power firm also said it was pursuing aggressive drive to meter customers as well as nip energy theft in the bud.
Some stakeholders in the power sector, however, said the big stick being wielded by AMCON on the power company was foretold on the ground that it has been in crisis lately which has affected its service delivery to customers.
