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Mainstreet Bank: Intangis Holdings says Afribank’s liquidation ‘illegal’

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Intangis Holdings has said that the liquidation of Afribank and subsequent transfer of its assets and liabilities to Mainstreet Bank in August 2011 is illegal.

The company through African Media Agency (AMA) stated that “Nigerian bad bank, AMCON, which was mandated to only deal with Afribank’s non-performing loans, invested in its share capital, then liquidated the bank and transferred all its assets and liabilities to Mainstreet Bank, which it wholly owns. Afribank’s shareholders and creditors, including Intangis Holdings, have been stripped of their rights,” said Jean Missinhoun, senior partner of Intangis Holdings.

Meanwhile, shareholders of the defunct Afribank, now Mainstreet Bank, had placed a caveat emptor on AMCON’s invitation for expression of interest for the acquisition of AMCON’s shares in Mainstreet Bank Limited.

Mustapha Chike Obi, the managing director of AMCON, had reacted to the publication, insisting that the supposed shareholders had no right to write such as AMCON is the sole owner of the financial institution.

“There is only one shareholder of Mainstream Bank and that is AMCON. The old Afribank has been grounded legally by the court, so Afribank no longer exists. When you say shareholders of Mainstream Bank it is only AMCON.”

He said that AMCON took over the bank when it provided N450 billion to ensure that the depositors with Afribank did not lose their funds.

“Anyone willing to give back that money to AMCON can have the bank back,” Chike Obi said, stressing the need for AMCON to recoup its funds.
He said that the decisions of the acclaimed shareholders over the planned sales was wrong as the owners of the bank had destroyed the bank and decided to have the bank back at no cost.

On July 1, 2014, Intangis Holdings filed a claim for damages for tortuous interference against AMCON in the Supreme Court of the State of New York to assert its rights.

“The suspension of the ICC arbitration is a matter of procedure – Intangis Holdings has been substituting for the payment of Mainstreet Bank’s share of the advance on costs. This decision does not affect the outcome of the case. Intangis Holdings is fully focused on the action against AMCON in the Supreme Court of the State of New York,” confirmed Jean Missinhoun

Article Credit: Businessdayonline

Updated 5 Years ago

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Tags:     Mainstreet Bank     Afribank     AMA     AMCON     Jean Missinhoun     Mustapha Chike Obi