The Asset Management Corporation of Nigeria has taken over the management of Capital Oil and Gas Industries.

The Head of Corporate Communications, AMCON, Mr. Kayode Lambo, said in a signed advertorial on Wednesday that the management’s takeover of the indigenous downstream player would last for two years.

He explained that the takeover became necessary after AMCON acquired Capital Oil and Gas’ outstanding facilities from various banks.

The corporation said, “Following discussions with COG, a resolution was reached, which was subsequently adopted as terms of settlement in suit number FHC/ABJ/CS/714/2012 at the Federal High Court. One of the key conditions of this settlement is that AMCON takes over executive management of the COG for a period of two years.

“Dr. Patrick Ifeanyi Ubah, the erstwhile Managing Director/Chief Executive Officer, has consequently relinquished his role as head of the organisation. In the interim, AMCON has appointed an acting managing director to ensure accountability and continuity of operations.”

AMCON said its takeover of the executive management of the COG within the two-year timeframe would stabilise the company, adding that it planned to ensure seamless operations at the company.

The agency added that it would, within the two years, “drive the turnaround of the company’s operations in order to meet various timelines and goals set by COG’s board of directors and AMCON.”

“This change of management was effected on June 21, 2013,” AMCON said.

When contacted on the telephone by our correspondent, the Administrative Manager, Capital Oil and Gas Industries, Mr. Ugochukwu Ehighibe, confirmed the development.

“Yes, we have an agreement with them,” he said.

AMCON had shut the premises of Capital Oil and Gas in 2012 following an Abuja Federal High Court ruling that the agency should take over the company’s properties and assets over an alleged N48.014bn debt.

The closure of the company’s 196-million-litre capacity storage tank often used by the Nigerian National Petroleum Corporation for products storage had hampered products distribution across the country then.

Justice Abdul Kafarati, however, on December 13, 2012 set aside the ex-parte order of November 13, which directed AMCON to take immediate possession of the properties and assets of Capital Oil and Gas as well as those of its managing director, Ubah, over the firm’s alleged indebtedness to the corporation.

But AMCON in an advertorial said it remained firm in its “resolve to vigorously pursue the indebtedness and ensure the recovery of the debt in the interest of the economy.”

The Managing Director, AMCON, Mr. Mustafa Chike-Obi, had put Capital Oil and Gas’ total indebtedness at N65bn as of December 2012.

“It was N53bn plus N12bn of interest accumulated over the last two years, and the interest is accruing at the rate of about N800m to N900m a month,” he had said.

asha 80: 65bn debt?i guess that is why he is fighting tooth and nail to occupy awka house.

one.east4:
The clown Ifeanyi is a drowning man. He cannot even win a local government chairman in Anambra talk more state governor. God forbid.

An illiterate for that matter, who can't even make one correct sentence.

shortgun:
Did I hear say an illiterate?

An illiterate who built a company from scratch to multi million million dollar corporation.
An illitrate who was selling kerosene at 50 naira per liter while other companies were selling the same product for 150 naira.

Is capital oil the only company that is in debt in this country?

alexchiny:

What has all these crap you posted above got to do with his illiteracy? An illiterate defending his kind!

berem: But he has a doctorate degree! how is he an illiterate? There's a difference between an illiterate and an uneducated person.

alexchiny:

What has all these crap you posted above got to do with his illiteracy? An illiterate defending his kind!

asha 80: pls which institution gave him the degree?

shortgun:
Did I hear say an illiterate?

An illiterate who built a company from scratch to multi million million dollar corporation.
An illitrate who was selling kerosene at 50 naira per liter while other companies were selling the same product for 150 naira.

Is capital oil the only company that is in debt in this country?

berem: I don't have an idea but, he has a Doctor prefix attached to his name

asha 80: no be nigeria?

shortgun:
Stop deceiving yourself, go learn a trade, certificate alone can't put food on your table.

The man is an achiever, he's witch hunted cos he stepped on toes, literate or illitrate, Ifeanyi Ubah is an entrepreneur per excellence, we need more people like him, go hang yourself.

asha 80: guy are this slow?which biz man in a biz to make loss?has it not occured to you he was selling at that amt to get sympathy and votes?which other oil company is selling at that amt?did you not see the monthly interest his company is accumulating?nearly a billion naira?so where is going to get the money to settle his debt?he cannot manage his company and he wants to manage a state.

mekaboy:

You need people like him in ur family not anambra govt house.

berem: But he has a doctorate degree! how is he an illiterate? There's a difference between an illiterate and an uneducated person.

shortgun:
Stop deceiving yourself, go learn a trade, certificate alone can't put food on your table.

The man is an achiever, he's witch hunted cos he stepped on toes, literate or illitrate, Ifeanyi Ubah is an entrepreneur per excellence, we need more people like him, go hang yourself.

shortgun:
Get your facts right my friend, he was into partnership with NNPC.
Most big businesses in a Nigeria are greedy that's why they won't sale at 50 naira.
This is a man who brought succor to the masses,he deserves our commendation.

Businesses in other climes survives by loans from banks.
Haven't u noticed that the interest of the loan is exorbitant?
This is why businesses are closing daily in Nigeria.

The banks should also share in the blame, as a bank u can't just give billions of dollars to a company without monitoring how the money is been spent.

alexchiny:

From which institution please? Dude is a known drop-out. A stark illiterate.

alexchiny:

I don't care if he feeds you and your family sir! The point is, Anambra don't need a stark illiterate with an empty skull as a Governor! We are not that hungry to sell out our votes to the highest bidder! Tell your boss that he is just wasting his precious time.

Boss13:

Chief shutup if you don't know what you are saying. Just keep quiet and learn. Go and study business finance and know how many businesses source their finance. Business survives on their rate of potential and actual earnings, their ability to generate earnings or income. It is their earning that gives them the ability to pay for interest on loans. Loans are leverage used to support the business, some are use to solve liquidity problem, some are used to increase the earning capacity of the business like the purchase of non-current assets, sometimes loans are use to address working capital problems. A business that is doing well and generating enough earnings do not require loans because it can generate enough retained earning for either expansion, purchase of assets or payments of dividends to shareholders. E.g UAC, Unilever, Nigerian Breweries. These food and beverage companies rarely borrow, they do so reluctantly because there is too much liquidity and effective cash management system.

In the case of Ifeanyi Ubah, he was overtrading (you can check my previous comment on this) also Cosmas Maduka stated that too. Ifeanyi Ubah was doing too much with too little capital, he was overshooting what his capital can handle and hence supporting it with borrowings from banks. His problem was that, though he was making turnovers, inventories were plying up and so were his debtors, his cost of sales was also increasing and he could not pay back interest on loans. He now devised a scheme of collecting loans from banks to settle other existing loans, business expensive and also trading expense. That is where he started shooting himself on the leg. He also started collaborating with shipping companies to divert petroleum products (where he fell out with Cosmas Maduka and Access Bank Plc). When you sum up all these, you would see management inefficiencies only perpetrated by someone who is uneducated. AMCON knew they would take over, it was just a matter of time. This is a welcome development at least better than killing the company altogether.

Boss13:

The guy will run Anambra to the grave. Because he is so illiterate, he thought getting into government will deliver his company out of the insolvency he has put it into. I overheard from a reliably source saying so. He wants to pump anambra's money into his company to rescue his company from going down. Not a bad idea business wise, that would save the company but stiffen the progress of anambra state.

alexchiny:

What has all these crap you posted above got to do with his illiteracy? An illiterate defending his kind!

EMMA BC:

U seem stupid and ill-educated for not knowing the meaning of illiteracy. Go and check the meaning and come back.