₦airaland Forum

swiz123:
Nigerians and their unscrupulous ways. They're never straight forward... Infact I blame IHG on this, cos they should have pulled out a long time ago before the debt accrued that much.



Nigerians and debt are like.......you all know the rest

exactly my point too. With this attitude of managers here in nigeria, and the way theY handle things, it will be difficult for any foreign company to do joint business with nigerian counterpart. The banking sector is even the worst.

abiolert:
exactly my point too. With this attitude of managers here in nigeria, and the way theY handle things, it will be difficult for any foreign company to do joint business with nigerian counterpart. The banking sector is even the worst.

Sorry, but ur comment does not apply to the topic in question. Please understand what the report is saying. Intercontinental hotel pays its investor (Milan industries)tons of money every month from its revenue based on agreement. Meanwhile, the hotel owes skye bank huge debt which had become a bad loan.

Skye bank, after court order, took over management of the hotel and appointed its receiver/manager to be in charge of running the hotel. Now, the issue is that the receiver has not been remitting the moneys due to Milan because according to him, it's not sustainable in view of the debt to be recovered first.

Thats why the investors are threatening to pull out and terminate the agreement.

The question is if someone has owed u for long and u come to be in charge of his business, wont u pay urself back first before paying his business partners what they had been enjoying before?

ThierryJay:
Sorry, but ur comment does not apply to the topic in question. Please understand what the report is saying. Intercontinental hotel pays its investor (Milan industries)tons of money every month from its revenue based on agreement. Meanwhile, the hotel owes skye bank huge debt which had become a bad loan.

Skye bank, after court order, took over management of the hotel and appointed its receiver/manager to be in charge of running the hotel. Now, the issue is that the receiver has not been remitting the moneys due to Milan because according to him, it's not sustainable in view of the debt to be recovered first.

Thats why the investors are threatening to pull out and terminate the agreement.

The question is if someone has owed u for long and u come to be in charge of his business, wont u pay urself back first before paying his business partners what they had been enjoying before?

NOTED

These guys are thieves.
I know them. They are always causing trouble and making threats.

nwanna89:
That is racist.

no I am not, well they started the hate trade first.

Let us read the post very well, understand same before passing judgments. Skye bank shouldn't have taken over management of the hotel since IHG still have till 2021 to pay what was borrowed. This is a case of *forceful take-over*.

kitaatita:
Misleading caption. for those who are too busy to read the article; Intercontinental is NOT pulling out of Nigeria. The group gave notice of termination of management agreement with MILAN Group, a private sector company. The termination notice results from the hotel going into receivership and the Receiver not giving Intercontinental the free hand required to run the hotel, plus money being owed the Intercontinental Group by the Receiver.

God bless you. Too many ignorant people on nairaland.

Also the reason why the money remains unpaid is because Intercontinental has informed the partners that they can no longer afford to make dollar payments and offered naira instead but they refused.

My question for the people that structured the agreement is this why domicile partnership payments in dollars when the cash flow from the hotel is in naira?

ezef2k4:
Let us read the post very well, understand same before passing judgments. Skye bank shouldn't have taken over management of the hotel since IHG still have till 2021 to pay what was borrowed. This is a case of *forceful take-over*.

There is more to the take over. The owners of the hotel were diverting funds and defaulting on the loan repayment.

There were already backlog of missed loan re payments which necessitated the handing over of the hotel to a receiver manager.

Also the fact that the loan will expire in 2021 does not mean that the bank can't take over the hotel if the loan conditions aren't adhered to.

ThierryJay:
Sorry, but ur comment does not apply to the topic in question. Please understand what the report is saying. Intercontinental hotel pays its investor (Milan industries)tons of money every month from its revenue based on agreement. Meanwhile, the hotel owes skye bank huge debt which had become a bad loan.

Skye bank, after court order, took over management of the hotel and appointed its receiver/manager to be in charge of running the hotel. Now, the issue is that the receiver has not been remitting the moneys due to Milan because according to him, it's not sustainable in view of the debt to be recovered first.

Thats why the investors are threatening to pull out and terminate the agreement.

The question is if someone has owed u for long and u come to be in charge of his business, wont u pay urself back first before paying his business partners what they had been enjoying before?

Point of correction Milan is not an investor but rather a technical and franchise partner.

The hotel is funded by Skye Bank top to bottom.

deenee:
God bless you. Too many ignorant people on nairaland.

Also the reason why the money remains unpaid is because Intercontinental has informed the partners that they can no longer afford to make dollar payments and offered naira instead but they refused.

My question for the people that structured the agreement is this why domicile partnership payments in dollars when the cash flow from the hotel is in naira?

Thanks for giving more insight to the disagreement. The agreement and similar ones contributed and still contributes to capital flight from Nigeria. MTN doesn't generate dollar income but repatriates huge dollars as profit from our scarce forex. I don't know who allowed such policy. Nigeria has one of the highest returns on investments in the world. Foreign companies brought in the meagre investment and made huge profits which they repatriated in hard currency. At the slightest shock, they took away their capital and dealt further blow on our scarce reserves. Ignorant Nigerians shouted that businesses are leaving the country. They never invest in the real sector.

deenee:
Point of correction Milan is not an investor but rather a technical and franchise partner.

The hotel is funded by Skye Bank top to bottom.

You are correct. Milan provides technical service and receives management fees from IHG.

However, I was only trying to use easily understandable terms to simplify the narrative. It might have been difficult for others to understand what a technical and franchise partner does.

ThierryJay:
You are correct. Milan provides technical service and receives management fees from IHG.

However, I was only trying to use easily understandable terms to simplify the narrative. It might have been difficult for others to understand what a technical and franchise partner does.

Ok but the comparisons are two opposites. An investor will typically have a stake in the business by way of equity or debt injection into the business and also meaning that they will have some form of risk attached to their investment.

A technical and franchise partner won't have any of these. They are on board by virtue of the experience they have managing similar investments or projects and are paid for the services rendered.

Will the world end if the Milan people leave IHG, the answer is NO. The only thing is service standards will drop which will in turn affect revenue turnover and IHG will become another glorified Federal Palace Hotel if they don't remedy the situation.

Same way KFC will come and be charging their franchisees an arm and leg in Nigerian and to be honest I don't blame them or any of the other foreign technical partners. Give this kind of task to a Nigerian technical or franchise partner and trust me they will run the entire company into the ground before you say Jack Robinson!