MRS Holdings denies owing AMCON N81 billion

In a press release yesterday (Tuesday, July 12), the conglomerate stated that it has fully redeemed its obligations.

It asserted :

Our attention has been drawn to a recent publication by the Asset Management Corporation of Nigeria alleging that MRS Holdings Limited is indebted to it in the sum of N81 billion and that the corporation has instituted Suit No: FHC/L/CP/923/2016 to wind up the company over the inability of MRS to pay the alleged debt.MRS challenges in the strongest possible terms the false claim by AMCON that MRS is indebted to it in the sum of N81 billion or any sum at all.

The correct position is that MRS obtained a syndicated loan from a consortium of banks in Nigeria for a viable project. AMCON took over the loan. However it became clear to AMCON that MRS was paying down on the loan and agreed to restructure the loan on agreed terms of N74 billion.

The said debt has since been fully settled. The terms of settlement was entered as a judgment of court on 29 June 2015, in Suit No FHC/L/CS/1365/2015.

MRS is shocked that in spite of having fully settled the debt, AMCON has decided to re-litigate an already concluded matter.

MRS Holdings Limited understands AMCON’s statutory function to recover debts but by no stretch can this mean harassment of companies.

It is not a crime to obtain loans for viable projects. Execution of viable projects leads to job creation and growth of the economy. However, when companies that obtained loans for legitimate businesses are being harassed and embarrassed in the name of aggressive debt recovery, it signals danger for economy growth.

MRS has taken notice of AMCON’s frivolous recovery cases against many companies on similar issues to MRS. Not surprisingly, all the cases were dismissed by the courts.