The Asset Management Corporation of Nigeria (AMCON) has initiated bankruptcy proceedings against Rajesh Valecha, the Chairman of Milan Industries Limited, and four other directors of the company, citing an alleged failure to repay a staggering N42 billion debt.
Alongside Rajesh Valecha, the other directors mentioned in the ongoing petitions held before two judges of the Federal High Court in Lagos are Ramesh Valechha, Vikram Valechha, Odunlami Bayo, and Akin Femiwa Akinsola.
According to Kunle Ogunba (SAN), the attorney representing the plaintiff, the substantial debt of N41,511,758,031.14 originated from multiple loan agreements with Skye Bank (now Polaris Bank) obtained by Milan Industries Ltd and Milan Nigeria Ltd between 2010 and 2012. The directors are now being held responsible for this unpaid debt.
AMCON revealed that the loan funds were primarily utilized by the debtor companies for the development of a 361-room hotel establishment located at 52 Kofo Abayomi Street, Victoria Island, Lagos, previously known as Intercontinental Hotel (now referred to as Lagos Continental Hotel).
In a statement, AMCON emphasized, “The debtors, as of the instant of this petition, remain indebted to the creditor (AMCON) to the tune of N41,511,758,031.14, which said sum remains unpaid.”
Furthermore, AMCON cited Section 48 of the Asset Management Corporation (Amendment No.2) Act, 2019, granting the corporation the authority to pursue and recover the indebtedness of debtor companies by enforcing the individual liability of each shareholder and/or director of the said companies.
The article provides details on AMCON’s decision to initiate bankruptcy proceedings against Milan Industries Limited and its directors over an alleged failure to repay a substantial debt, highlighting the legal implications and the corporation’s pursuit of debt recovery.
The commencement of bankruptcy proceedings against Rajesh Valecha and the four other directors underscores AMCON’s commitment to recovering outstanding debts and ensuring accountability in financial transactions.
