The Asset Management Corporation of Nigeria (AMCON) has commenced bankruptcy proceedings against Rajesh Valecha, the Chairman of Milan Industries Limited, Milan Nigeria Ltd, and Milan Beverages Ltd, along with four other directors of the companies due to their alleged failure to repay a N42 billion debt.
The additional directors mentioned in five ongoing petitions held before two judges of the Federal High Court in Lagos are: Ramesh Valechha, Vikram Valechha, Odunlami Bayo, and Akin Femiwa Akinsola.
As per the attorney representing the plaintiff, Kunle Ogunba (SAN), the outstanding debt of N41,511,758,031.14 originated from multiple loan agreements with Skye Bank (now Polaris Bank) taken out by Milan Industries Ltd and Milan Nigeria Ltd between 2010 and 2012. The directors are now held accountable for this debt.
AMCON indicated that the debtor companies primarily utilized the loan funds for the development of a 361-room hotel establishment located at 52 Kofo Abayomi Street, Victoria Island, Lagos, previously recognized as Intercontinental Hotel (presently known as Lagos Continental Hotel).
It was mentioned that, “the debtors are, as at 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.
“The creditor, by the provisions of Section 48 of the Asset Management Corporation (Amendment No.2) Act, 2019 is also imbued with the requisite vires to proceed against and recover the indebtedness of the debtor companies by the enforcement of the individual liability(ies) of each shareholder and/or director of the said debtor companies – in the instant case, being Milan Industries Limited, Milan Nigeria Limited, Milan Beverages Limited.”
