First Bank

Monday, August 25, 2014

AMCON Gets N10 billion judgement against Jorotom International, Threatens To Sell Off Company's Properties To Offset Debt

Jorotom International has been asked to pay the sum of N10,935,703,088.01 to the Asset Management Corporation of Nigeria (AMCON)by the Federal High Court in Lagos. Investigations

revealed that the judgement debt was in respect of the company’s indebtedness to AMCON following several cases of bad debts ramped up by Jorotom International.

It was gathered that Jorotom had taken up several regulatory agencies in the financial services sector following the classification of the numerous credit facilities it took from deposit money banks over the years as bad loans.

Digs further revealed that the Central Bank of Nigeria (CBN) had on November 21, 2012 published the names of high value debtors in Thisday newspapers, including Jorotom International and warned banks not to lend to the affected companies and Jorotom International.

Findings revealed that AMCON’s decisive steps to get the proceeds of the judgement debt against Jorotom International triggered panic in the medium sized company as its total capitalisation is less than N2 billion and would not be able to pay.

Besides, AMCON had threatened to seal up the company and begin the sale of the assets of Jorotom International, a measure that may lead to the death of the company in view of the harrowing and flat financial position of the company. It was gathered that profligacy and expenditures which are at variance with standard financial rules were at the heart of Jorotom’s financial predicament and accumulated debt profile of over N10 billion.

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