AMCON may sell N4bn jet at a loss

Seven months after putting its brand new Canadian-made private jet for sale, the Asset Management Corporation of Nigeria is still in search for a suitable buyer for the state-of-the-art aircraft.

It was gathered on Thursday that AMCON might eventually be forced to sell the Challenger 605 luxury private jet worth N4bn at a huge loss in order to stem further losses.

AMCON, the bad debt manager created after the banking sector crisis of 2009, had in August last year put the jet up for sale through a public notice.

The corporation is facing an uphill task selling the jet, which it reportedly collected from a business executive through an asset transfer deal in settlement of his indebtedness.

AMCON, however, denied this and insisted that the plane was acquired by the corporation for sale.

It was learnt that the corporation had been incurring storage costs on the plane in the last eight months in order to continue to keep it airworthy.

According to sources, AMCON is offering to sell the jet for over $25m, whereas prospective buyers are offering far below the amount.

It was learnt that there was little hope that prospective buyers would offer higher amount for the jet due to the falling prices of private jets globally.

While prices of private jets have been fallen due to low global demand, sources said AMCON had bought the jet at a relatively high price.

It was gathered that AMCON bought the jet at such a high amount because the indebtedness of the business mogul from whom it got it would have gone bad if the corporation had failed to do so.

 One of the sources close to the deal, who spoke under the condition of anonymity because he was not authorised to speak on the matter said, “If AMCON had a choice, it should not have collected that plane at that high price. But people are of the opinion that the indebtedness of the concerned business mogul would still have gone bad if AMCON had failed to do so.

“Considering the fact that prices of jets have crashed globally and the relatively low price that prospective buyers are willing to pay, AMCON may have to sell at a loss. The loss may even be close to N1bn if care is not taken.”

The Head, Corporate Communications, AMCON, Mr. Kayode Lambo, who confirmed that the plane had not been sold, said the corporation was still open to prospective buyers.

When our correspondent asked what the private jet was being used for currently, Lambo said, “We are entertaining requests that come in. We are not using the aircraft for any charter business. AMCON has never used it or will ever use it. It is being kept current by professional pilots and engineers. It does not carry any passengers at all.”

Aviation experts said the more the aircraft stayed on the ground, the more it would be losing value, adding that aside from the minor costs of keeping it current, the plane was already depreciating, a situation that any prospective buyer would put into consideration.

Copyright PUNCH.