The Asset Management Corporation of Nigeria (AMCON) has said that leading to its takeover of Arik Air, the financial condition of the airline was so much in a bad state to the point it could not afford aviation fuel.
AMCON MD, Mr. Ahmed Kuru, disclosed this on Wednesday while briefing members of the Committee on Banking, Insurance and other Financial Institutions, on the circumstances that surrounded the airline’s take-over.
Kuru said contrary to earlier claims, Arik owes AMCON N147 billion and was indebted to other local banks to the tune of N165 billion, while the foreign debts stand at $81 million.
He blamed Arik’s incessant cancellation and delay of flights to its inability to buy aviation fuel saying the airline failed to meet all its obligations.
His word, “Despite all the things we have done to ensure that Arik Air stays in business, they have not done their part in meeting their own obligations. Arik Air owes up to seven months salaries to workers.
“…We discovered that out of the 30 aircraft of the airline, only about 10 were functional. Some of them were not in Nigeria. They failed to meet all their obligations, even the insurance payment. They did not even have money to buy aviation fuel.”