Arik Air (W3, Lagos) shareholders have expressed concern over the apparent depletion of the airline's assets under receivership and that the airline's receiver manager has failed to publish audited accounts as directed by the Nigerian Federal High Court in Lagos on March 31, 2023, reports The Sun Nigeria.
Arik Air was placed under the receivership of the Asset Management Corporation of Nigeria (AMCON) on February 8, 2017, based on debts of NGN141 billion naira (USD186.6 million). However, in a statement, Arik's shareholders said this was less than 5% of the airline's value of USD3.7 billion in 2014. "We wish to state that before the receivership by AMCON, Arik Air was valued at the sum of USD3.7billion by Deloitte of London. This valuation [was] a product of months of forensic review of all assets and visits to all worldwide stations, including the Nigerian base, by the valuers in 2014." It said the Deloitte report was presented to the Minister of Finance, the Central Bank of Nigeria, and AMCON management in 2014.
In 2021, Arik Air shareholders, through the airline's vice chairman, Aniette Okon, demanded that AMCON file a statement of affairs of the company to ascertain the state of the airline's indebtedness, "but AMCON bluntly refused and resorted to name calling".
"Now, it is interesting that after over 80 days that the Federal High Court, in suit number FHC/L/CS/1175/2021, ruled on March 31, 2023, that the receiver-manager and AMCON should within 14 days of the judgment, file the audited accounts of Arik Air since the receivership (a period of six years) with the Corporate Affairs Commission (CAC), the receiver-manager and AMCON are yet to obey the court order," the statement read.
As reported, the Federal High Court on March 31, 2023, also set aside the transfer of the airline's assets to a planned new national carrier, NG Eagle (2N, Lagos), and Super Bravo Limited. At the time, AMCON said it would exercise its right to appeal the ruling.
The lawsuit was filed by Arik Air co-founders Johnson Arumemi Ikhide and Mary Arumemi Ikhide in 2021 (No FHC/L/CS/1175/2021) against receiver-manager Omokide Kamilu Alaba, AMCON, the Nigeria Civil Aviation Authority (NCAA), NG Eagle, and Super Bravo accusing them of transferring or attempting to transfer Arik Air assets to NG Eagle and Super Bravo in violation of Section 553 of the Companies and Allied Matters Act 2020.
AMCON took over Arik's non-performing loans in exchange for a stake in the ownership of the airline. The airline is said to have become moribund under AMCON in six years, according to Vanguard News. However, the receiver-manager has attributed the failure of Arik Air to challenges it faced before AMCON took it over, saying that due to the airline's debt exposure, there was a paucity of operational funds, which hamstrung its ability to adequately utilise its equipment.
Arik Air also has been in the spotlight recently concerning a dispute over the sale and dismantling of a CRJ1000.
Arik Air declined to comment. An AMCON spokesman also declined to respond as the matter between Arik Air, the receiver-manager and AMCON is pending before the Nigerian Court of Appeal and Supreme Court.