Afribank – Mainstreet Bank: “Nigerian Bad Bank, Amcon, must comply with the rules.”


LONDON, United Kingdom, 30 June 2014 -/African Media Agency (AMA)/- Created in 2010 to deal with non performing loans held by Nigerian banks directly affected by the 2008 international financial crisis, the Nigerian Bad Bank structure Asset Management Corporation of Nigeria (Amcon) has broadened its mandate to the detriment of transparency and governance requirements that are essential in a global business world. Having referred the Mainstreet Bank (formerly Afribank) case to the International Court of Arbitration (ICC) in Paris, Intangis Holdings is contemplating legal action against Amcon.

Background

After taking participation interests in the share capital of Afribank in 2010, Amcon organised the liquidation of the banking group and subsequent transfer of all its assets to a new structure, Mainstreet Bank, which it wholly owns. This liquidation concluded between 5 and 8 August 2011 with total disregard to the rules of law, harmed all Afribank’s shareholders and creditors, including Intangis Holdings. Intangis Holdings referred the matter to the International Court of Arbitration, on 29 April 2011, which issued a preliminary decision in its favour in September 2013 and took the view that
Mainstreet Bank was party to the contract between Intangis Holdings and Afribank.

Since that decision, Amcon has taken steps to divest from Mainstreet Bank while omitting to make provision as required by the international accounting rules (IFRS) for certain liabilities of the bank, estimated by Intangis Holdings at $1.4 billion.

Intangis Holdings calls for compliance with the international accounting rules (IFRS) and reserves the right to commence legal proceedings to assert its rights. At the time Amcon, which was only mandated to deal with Afribank’s non-performing loans, invested in its share capital, the bank with a total assets of $3 billion was ranked 16th among West African banks according to the 2009 league table “The top 200 African banks” published by Jeune Afrique magazine. Afribank was also listed in the Dow Jones
“Africa Titans 50” index.

The target date for the divestment of Amcon’s stake in Mainstreet Bank has been set for 15 September 2014. “If Amcon manages to sell Mainstreet Bank after having organised such a transaction and without ensuring proper reporting of the bank’s books, we would be dealing with a huge scandal. The banking group would be jeopardized, its customers endangered and its historic shareholders and creditors would suffer irreversible damages. Intangis Holdings cannot believe that the Nigerian authorities would tolerate such actions in contradiction to the requirement for transparency and good governance,” declared Jean Missinhoun, senior partner of Intangis Holdings.

About Intangis Holdings

Intangis Holdings is an American financial and investment company (with offices in New York and London) established in 2001 and specialised in Emerging Markets. In Africa, Intangis Holdings has been involved in long-term with high potential projects. It participates in the equity and debt securities, credit and derivatives market. Intangis Holdings’ strategic vision and perfect knowledge of the “new frontiers” gives it a unique insight into its investments in Africa. Intangis Holdings is one of the major players contributing to the development and deepening of African financial markets.

Source: Intangis Holdings


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