Arik Air Chairman Faces Ultimatum For Debt Plan

In a surprising twist to the ongoing saga between Arik Air and the Assets Management Corporation of Nigeria (AMCON), the chairman of Arik Air, Johnson Arumemi-Ikide, has been issued an ultimatum to provide a viable debt recovery plan if he hopes to regain control of the beleaguered airline.

AMCON, which had taken over Arik Air in February 2017 due to a staggering N300 billion debt and allegations of mismanagement, appears to be willing to consider reconciliation.

Ahmed Kuru, the managing director of AMCON, stressed the urgency of the situation in a statement made to the press: “AMCON saved Arik Air from imminent collapse, and as a resolution agency of the government, looks forward to any obligor or debtor that wants to come to discuss repayment plan with us.”

Arumemi-Ikide had previously resorted to legal action against AMCON, citing restrictions placed on him by the government agency. The Federal High Court had also faulted AMCON’s handling of Arik’s assets transfer for establishing a new airline company.

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Addressing the ongoing dispute, Kuru stated, “Our doors are always open to resolve debts because that is our primary function, and aside from our recovery mandate, AMCON does not have a secret agenda. So the challenges of the founder of the airline to recover his airline might seem difficult, but not irredeemable; however, there is always a way out of every situation.”

He emphasized the need for cooperation, adding, “There must always be a situation of give and take, and AMCON is now ready to sit down with the owners of Arik if they are ready to agree on what is good for them and the Federal Government.”

Arumemi-Ikide shared insights into the dire state of Arik Air before AMCON’s intervention, revealing that the airline had only two weeks to survive if assistance had not arrived. “At that time, the government mandated AMCON to intervene; the airline was not paying staff salary, or insurance, and could not afford to buy aviation fuel to keep the planes flying,” he stated.

Furthermore, Kuru disclosed that Arik Air was facing significant operational challenges, with flights frequently delayed for up to three days and aircraft abroad being arrested.

In the midst of these developments, debtors seem to be avoiding AMCON’s calls, possibly due to rumors of the government winding up the debt recovery agency. Kuru, however, issued a stern warning, saying, “Just because AMCON may be closed doesn’t mean the government will forgive their debt.”