The Imo State Government has taken over the ownership of Standard Shoe Company Limited (SSCL), a footwear manufacturing factory, from the Asset Management Corporation of Nigeria (AMCON).
In a statement addressed to members of the public, AMCON’s Head, Corporate Communications Department, Jude Nwauzor disclosed that the deal was concluded after the successful liquidation of Standard Shoe Company’s N1.6 billion indebtedness.
“As part of its strategy to partner, support, and help revitalise businesses in its portfolio over huge debt, in Abuja on Friday, handed over the original title documents of Standard Shoe Company Limited (SSCL), a footwear manufacturing factory co-founded by the Imo State Government to Governor Hope Uzodinma of Imo State.
“The handover of the asset to the good people of Imo State through their governor followed the full resolution of the indebtedness of Standard Shoe Company Limited to AMCON. Ever since it took over the factory, AMCON had continued the engage the government of Imo State because of the critical impact resuscitating such a massive factory would make in the manufacturing sector of the Nigerian economy,” the statement read.
Following the conclusion of the deal, Imo State Governor Hope Uzodinma said he approached the management of AMCON for his liquidation of the debt to sail through, as he expressed gratitude to the corporation.
His words: “I approached the Management of AMCON and discussed with them. I want the public to understand that AMCON is not a hostile outfit. From my experience with them, AMCON is interested in the genuine growth and development of the Country. This is what I saw during the negotiation period concerning what Imo State was owing AMCON.
“I am very happy about the co-operation we (Imo State government) received, and I assure you that we are going to revive the industry by employing our young men and women to stimulate industrialisation in the state. The people will be happy to see the industry come back to life. On behalf of myself and the people of Imo, I am very grateful to AMCON.”
Standard Shoe Company Limited’s debt
In 2011, AMCON took over the assets belonging to the Standard Shoe Company of Nigeria in the course of the first phase of EBA purchases from Oceanic Bank. This was after the footwear manufacturer stopped its production, which was two years prior to the time over lack of capital and inability to meet its loan obligations.
Before 2020 when Uzodinma became the governor of Imo, AMCON had made several efforts to settle the debt with the previous statement governments, but could not make headway. However, with this development, BizWatch Nigeria understands that the debt obligations which have been settled would be useful in rehabilitating the company.
The rehabilitation would position Standard Shoe Company for the creation of employment opportunities and at the same time, give a boost to the earnings of the state government.
