The Asset Management Corporation of Nigeria (AMCON) has dissolved the board of Aero Contractors and appointed a manager to oversee the affairs of the airline.
This is just as AMCON has engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last five years.
Investigations reveal that the airline got N14 billion intervention fund in 2010 with additional investment by AMCON which has raised the debt profile of the airline to N20 billion.
A source hinted that in the last five years things went bad in the airline due to alleged mismanagement.
Shareholders of the airline it was learnt have not been happy with the state of affairs of the airline warranting its takeover by AMCON.
Sources further hinted that the takeover by AMCON is connected to the need to ensure the business is sustained, in order to ensure continuity and credit recovery.
The source said:” The intervention by AMCON is based on public interest, to ensure there is a viable transport system, ensure continuity without compromising safety standards, brand heritage and other factors. To select a management team for the airline as soon as possible and ensure that Aero flies in secured environment to protect shareholders values.”
A statement issued by the public relations firm handling the airline: SY&T explained that the takeover of the airline by AMCON is in furtherance of the statutory responsibility of acquiring Eligible Bank Assets and putting them to economic use in a profitable manner.
Currently, the Asset Management Company of Nigeria (AMCON) owns 60 percent of the company with the remaining 40 per cent held by the Ibru family.
Aero Contractors Nigeria’s oldest airline commenced business in 1959, initially providing services to oil and gas sector, before venturing into fix wing operations in the year 2000.
The statement reads: “AMCON has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last five years.
“AMCON is both the majority shareholder and creditor of Aero.
“An Industry based management team will be put in place to provide the highest level of professional competence which would ensure a quick repositioning of the company.
“The management of AMCON decided to make changes in the management of the airline to protect the brand heritage of the airline.
“AMCON also maintains that its intervention is in the public interest to sustain and improve the robust and premium quality service which Aero is known for in the country.
“AMCON would like to assure the regulatory authorities, the traveling public and key stakeholders that the airline will continue to operate on the solid foundation of safety and security with excellent customer service.”
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