The Asset Management Corporation of Nigeria (AMCON) took over Bacita Sugar Company in Kwara State yesterday by appointing Mr. A. B. Sulu-Gambari as the Receiver.

The Receiver confirmed that he took effective control of the company following the inability of the owners of the company, Josepdam Sugar Company Limited (JSCL), which is one of the debtors of AMCON to repay their outstanding debt. Bacita Sugar Company has over 30,000 hectares of sugarcane farm with a production capacity of 300 metric tonnes per day.

The company has capacity for refining of sugar raw materials and is also well positioned for backward integration into planting, harvesting, milling, and processing as well as refining sugar. With the appointment of a Receiver, AMCON's strategy is to put the sugar company back on the path of full production by partnering with investors for a value-enhanced exit within a reasonable period of time.

AMCON has intensified its debt recovery activities in recent times with the appointment 115 debt recovery professionals across the country under the asset management partnership programme.

The corporation is hoping to recover the over N200 billion bad debts owed by small debtors with the engagement of The small debtors, who owe N100 million and below account for about 6,000 out of total of 12,000 accounts currently in the books of AMCON, and total debts of more than N200 billion.

The AMPs would among other things work with AMCON in tracing, identification and location of obligors with the intent to resolve their outstanding indebtedness.

They would also be involved in tracing, identification and location of assets of obligors (both pledged and unpledged) to enhance the Eligible Bank Assets (EBAs) value and achieve set recovery objectives, negotiation of settlement and restructuring terms with identified obligors in line with approved guidelines.