BREAKDOWN: Arik ‘owed’ N387bn before FG took over

BREAKDOWN: Arik ‘owed’ N387bn before FG took over

BREAKDOWN: Arik ‘owed’ N387bn before FG took over

The management of Arik Air under the leadership of Johnson Arumemi-Ikhide, its founder, owed about N387 billion both locally and internationally, before the federal government took over.

According to a fresh deposition before the Federal High Court sitting in Ikoyi, Lagos, it was revealed that the airline was deducting contributory pension from its workers earnings but was not remitting the same to the pension authorities.

A demand letter from the National Pension Commission showed that the airline had an outstanding pension remittance of N4.587 billion.

The airline had debts across the west coast, in the United States, and United Kingdom, which the federal government considers as de-marketing Nigeria’s business reputation abroad.

Below is a breakdown of Arik’s debt, as filed before the federal high court:

S/N DEBT DESCRIPTION AGENCY/COMPANY OWED AMOUNT
 1.  Airline Insurance  Name of insurance companies withheld N418,893,067.97
2. Staff Pension National Pension Commission N4,586,860,471.50
3. Airline Maintenance Lufthansa Technik Group €31,000,000
4. Bank Loan Zenith Bank N28,346,678,438
5. Bank Loan Access Bank N9,447,673,924
6. Service Provision Amadeus Marketing Nigeria N632,490,151.60
7. Accomodation  Marriot and Best Western Hotels N3,800,000
8. Fraudulent Loan Name of Bank withheld N2,000,000
9. Services and Use of Facilities Federal Airport Authority of Nigeria (FAAN) N11,215,279,204.19
10. Financial advisory services Pan African Capital Limited N337,500,000
11. Judgement debt and interest (Suit: FHC/ABJ/CS/234/08) Nigerian Aviation Handling Company PLC. N339,996,233.11
12. Aviation Insurance Cover Name withheld N203,895,020.37
13. Tax Consulting Babington Ashaye & Co N60,750,000
14. Ticket Sales Wakanow N40,156,144.68
15. Refund for unused tickets Passengers N22,275,450
16. Telephone and Internet services 21st Century Technologies Limited N19,082,852.30
17. Tax Liability Kwara state Internal Revenue Service N1,474,530
18. Judgement Sum Akpan Anthony N1,474,530
19. Lease of aircraft and one spare engine Export Development Canada $53,422,583.17
20. Debt Sky Enterprises LLC $30,000,000
21.  Judgement sum  Arthur Eze and Atlas Petroleum Ltd.  $2,500,000
22.  Loan  Ike, Ike & Associates  $2,500,000
23.  FAAN Services  FAAN  $942,147.02
24.  Services  Airline Rotables Ltd.  $479,036.92
25.  Lease of PW 4168A-ID Engine  Pratt & Whitney Engine Leasing LLC  $140,610.21
26.  Fuel  World Fuel Services  $26,556.37
27.  Foreign Debt (West Africa)  Aviation Authorities in the West Coast  $6,500,000
28.  Foreign Debt (US)  US Customs  $987,170
29.  Foreign Debt (US)  US Internal Revenue Services  $311,888
30.  Foreign Debt (UK)  Heathrow and Her Majesty Revenue  N100,359,000
31.  Foreign Debt (UK)  UK Customs  N121,425,097.05

Based on the debts owed, the US IRS has declared a worldwide lien on all of Arik’s assets, which “makes the airline susceptible  to arrest in any jurisdiction worldwide”.

According to Gbolahan Odutayo, the assistant vice president II (AVPII) and team lead, transport and aviation unit at Arik, the new  receiver manager has spent N1.5 billion within February 8 and April 12, 2017, to keep the airline alive.

Odutayo said the US has also threatened to call upon the bond issued by Arik to the United States Customs for its operations in the US.

The federal government of Nigeria, through the Asset Management Corporation of Nigeria (AMCON) says it would make its final decision about Arik, very soon.

Source @thecableng
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