The Federal High Court has ordered Jorotom International to pay the sum of N10,935,703,088.01 to the Asset Management Corporation of Nigeria (AMCON).
The judgement ends a long battle between the ethically and financially bankrupt firm, Jorotom and AMCON.
Reports have it that the judgement that was handed down was in respect of the company’s indebtedness to AMCON following several cases of bad debts ramped up by Jorotom International.
It was gathered that Jorotom had taken up several regulatory agencies in the financial services sector following the classification of the numerous credit facilities it took from deposit money banks over the years as bad loans.
Findings further revealed that the Central Bank of Nigeria (CBN) had on November 21, 2012 published the names of high value debtors in Thisday newspapers, including Jorotom International and warned banks not to lend to the affected companies and Jorotom International.
Insiders revealed that AMCON’s decisive steps to get the proceeds of the judgement debt against Jorotom International triggered panic in the medium sized company as its total capitalisation is less than N2 billion and would not be able to pay.
Besides, AMCON had threatened to seal up the company and begin the sale of the assets of Jorotom International, a measure that may lead to the death of the company in view of the harrowing and flat financial position of the company.
Founded in 1981, the company is into haulage and oil and gas.
It is believed that profligacy and expenditures which are at variance with standard financial rules were at the heart of Jorotom’s financial predicament and accumulated debt profile of over N10 billion.