Afribank – Mainstreet Bank – Intangis Holdings files a complaint for damages against the Nigerian Bad Bank, Amcon, in New York


Intangis Holdings is an American financial and investment company (with offices in New York and London) established in2001 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 derivativesmarket. Intangis Holdings’ strategic vision and perfect knowledge of the “new frontiers” gives it a uniqueinsight into its investments in Africa. Intangis Holdingsis one of the major players contributing to the development and deepening of African financial markets.

LONDON, United Kingdom, 2 July 2014 -/African Media Agency (AMA)-/ On 1st of July 2014, Intangis Holdings filed a complaint for damages for tortious interference with contract against Amcon in the supreme court of the state of New York (United States).

After taking participation interests in the share capital of Afribank in 2010, the Nigerian Bad Bank structure 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, 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).The target date for the divestment of Amcon’s stake in Mainstreet Bank has been set for 15 September 2014.

Created in 2010 to deal with non performing loans held by Nigerian banks directly affected by the 2008 international financial crisis, Amcon has broadened its mandate to the detriment of transparency and governance requirements that are essential in a global business world.

At the time Amcon invested in Afribank, 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.

“If Amcon manages, with total disregard to the rules of law, 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.

Source: Intangis Holdings


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