The dismantling and sale of an Arik Air Boeing 737-700 has triggered a fresh dispute over ownership, creditor rights and the management of the airline’s assets under receivership.
While the Asset Management Corporation of Nigeria (AMCON) maintains that the aircraft was subject to security in favour of Access Bank, Arik Air shareholders have challenged the basis for the claim, insisting that the aircraft had been fully paid for and should have been discharged from the mortgage.
The controversy followed reports last week that the aircraft, registered as 5N-MJD and manufactured in 2007, was dismantled and sold.
The airline’s PR Consultant in Receivership, Simon Tumba, confirmed the sale, saying documentation establishing Access Bank’s security interest had been presented to AMCON and verified as genuine.
He said Arik Air and AMCON consequently did not object to the bank exercising its security rights, including the sale of the aircraft.
Documents provided by Tumba showed that the aircraft, with serial number 36073 and Nigeria Civil Aviation Authority certificate number 1243, was entered into the Federal Government’s register in November 2007. Another Boeing 737, registered 5N-MJC, was also identified as being under Access Bank security.
The shareholders, however, dispute the indebtedness allegedly underlying the security arrangement. In a statement signed by Godwin Aideloje, the shareholders’ media office said the aircraft was acquired through a structured financing arrangement involving US Exim Bank, PEFCO and Intercontinental Bank, now Access Bank.
According to them, Intercontinental Bank initially provided bridge financing but later acted only as guarantor after the US Exim/PEFCO funding was approved. They insisted that the aircraft had been fully paid for and that any claim that the bank’s mortgage remained outstanding was unfounded.
The shareholders said they had previously requested supporting documents for the alleged Access Bank indebtedness from Receiver Manager Oluseye Opasanya SAN but had not received satisfactory documentation.
Following their observation of the aircraft being dismantled at the domestic terminal of Murtala Muhammed Airport, they wrote to Opasanya on August 17 demanding clarification on its ownership, security status and the authority behind the dismantling.
They argued that the action raised concerns about asset preservation, transparency, accountability and the fiduciary responsibilities of the receiver-manager.
The dispute has also raised wider concerns within Nigeria’s aviation industry. Aviation Round Table Executive Secretary, Olu Fidel Ohunayo, said AMCON’s intervention was originally expected to revive Arik and protect creditors, but argued that the airline had instead suffered further deterioration under receivership.
He said poor communication and unresolved disputes between the airline’s shareholders and creditor banks had contributed to the airline’s decline, describing the situation as damaging to Nigeria’s reputation as a destination for serious investment.
The controversy therefore extends beyond one aircraft, with questions now focused on whether Arik’s remaining assets can be preserved and whether the prolonged receivership can still achieve its original objective of protecting value.
