The Asset Management Corporation of Nigeria has taken over the management of Capital Oil and Gas Industries.
The Head of Corporate Communications, AMCON, Mr. Kayode Lambo, said in a signed advertorial on Wednesday that the management's takeover of the indigenous downstream player would last for two years.
He explained that the takeover became necessary after AMCON acquired Capital Oil and Gas' outstanding facilities from various banks.
The corporation said, "Following discussions with COG, a resolution was reached, which was subsequently adopted as terms of settlement in suit number FHC/ABJ/CS/714/2012 at the Federal High Court. One of the key conditions of this settlement is that AMCON takes over executive management of the COG for a period of two years.
"Dr. Patrick Ifeanyi Ubah, the erstwhile Managing Director/Chief Executive Officer, has consequently relinquished his role as head of the organisation. In the interim, AMCON has appointed an acting managing director to ensure accountability and continuity of operations."
AMCON said its takeover of the executive management of the COG within the two-year timeframe would stabilise the company, adding that it planned to ensure seamless operations at the company.
The agency added that it would, within the two years, "drive the turnaround of the company's operations in order to meet various timelines and goals set by COG's board of directors and AMCON."
"This change of management was effected on June 21, 2013," AMCON said.
When contacted on the telephone by our correspondent, the Administrative Manager, Capital Oil and Gas Industries, Mr. Ugochukwu Ehighibe, confirmed the development.
"Yes, we have an agreement with them," he said.
AMCON had shut the premises of Capital Oil and Gas in 2012 following an Abuja Federal High Court ruling that the agency should take over the company's properties and assets over an alleged N48.014bn debt.
The closure of the company's 196-million-litre capacity storage tank often used by the Nigerian National Petroleum Corporation for products storage had hampered products distribution across the country then.
Justice Abdul Kafarati, however, on December 13, 2012 set aside the ex-parte order of November 13, which directed AMCON to take immediate possession of the properties and assets of Capital Oil and Gas as well as those of its managing director, Ubah, over the firm's alleged indebtedness to the corporation.
But AMCON in an advertorial said it remained firm in its "resolve to vigorously pursue the indebtedness and ensure the recovery of the debt in the interest of the economy."
The Managing Director, AMCON, Mr. Mustafa Chike-Obi, had put Capital Oil and Gas' total indebtedness at N65bn as of December 2012.
"It was N53bn plus N12bn of interest accumulated over the last two years, and the interest is accruing at the rate of about N800m to N900m a month," he had said.