Nigeria's state-owned Asset Management Corporation of Nigeria (AMCON) has announced that Arik Air's operations under receivership are unaffected by a March 31 Lagos Federal High Court ruling to set aside the transfer of the airline's assets to other companies.

In a statement, AMCON said it would exercise its right to appeal the ruling relating to its "dealings in specific transactions concerning limited assets".

Still, it added, the court "clearly and without equivocation affirmed that AMCON was competent and empowered to appoint the receiver/manager of Arik, that the appointment by AMCON was proper, and that the continued operations of Arik are not affected. Put simply: the judgement does not affect the operations of Arik or the powers of the receiver/manager to superintend the affairs of Arik [Air]".

"The court did hold that the receiver/manager was obligated to act in the best interests of Arik and other creditors - a point that AMCON and the receiver/manager have never disputed," the state-appointed asset manager said.

AMCON took over Arik Air in February 2017 and appointed Kamilu Alaba Omokide, receiver and manager of Arik Air, with a mandate to turn around the airline. Omokide subsequently handed over management of the carrier to NG Eagle (2N, Lagos) and Super Bravo Limited, Nigeria's Leadership publication reported.

To stop this, Arik Air, led by its founder, Johnson Arumemi Ikhide and his wife Mary Arumemi Ikhide filed suit on December 14, 2021, against Omokide, AMCON, NG Eagle Limited, Super Bravo Limited, and the Nigeria Civil Aviation Authority (NCAA).

In his ruling on March 31, judge Lewis-Allagoa ordered that:

  • the transfer of Arik Air assets by Omokide or AMCON to NG Eagle and/or Super Bravo be set aside;
  • the transfer of Arik Air's assets was done in bad faith and constituted a violation of the receiver/manager's duty to Arik Air under Nigeria's Companies and Allied Matters Act of 2020;
  • the best interests of the airline must include the best interests of the plaintiffs as members of Arik Air;
  • Omokide was liable for any losses suffered by Arik Air and/or its members as a result of the transfer of assets;
  • AMCON was "vicariously liable" for the acts of Omokide;
  • despite the appointment of the receiver/manager, "the organs" of Arik Air Limited, including directors and shareholders, "subsist";
  • the directors and shareholders of Arik Air still have rights and powers regarding Arik Air save for day-to-day management; and
  • Omokide and AMCON allow the directors and shareholders of Arik Air unfettered access to their offices, premises, facilities and staff required to discharge their functions.

The judge also reportedly ordered Omokide and AMCON to deliver within 14 days Arik Air's financial returns for the entire receivership period to Nigeria's Corporate Affairs Commission.