Multi-Trex set to resume production following resolution with AMCON

….Multi-Trex’s board may change
Common sense may have prevailed over the debt burden of Multi-trex integrated foods Plc on eventual collapse of the firm, following its closure two years ago by the Asset Management Company of Nigeria (AMCON).

Daily Times finding showed that for the two years closure, the company’s growth has been retarded for over five years, which has been proffered as estimated time of recovery from losses arising from closure.

However, it may be evident that part of the terms of agreement could entail changes in the ownership structure of the company and board composition.

Multi-Trex Integrated Foods Plc, currently under closure by the Asset Management Company of Nigeria (AMCON) for its indebtedness to financial institutions has disclosed that respite has finally come its way, as production will soon commence.

The company, Daily times Nigeria recalls, has been under AMCON’s receivership over its indebtedness to financial institutions which AMCON bought over from the deposit money banks.

However, Multi-trex explained that it is expected that following level of progress made in talks with AMCON, it is expected that production will resume in the last quarter 2017.

In a letter delivered to the Nigerian Stock Exchange (NSE) signed by the company’s secretary, Bolaji Olushola, the firm said that, “Multi-trex and

the Asset management Company of Nigeria (AMCON) have reached the closing phase in resolving difference that led to the temporary closure of the company’s business operations two years ago.”

According to the company, AMCON in a letter addressed to its receivership, dated 11th August, 2017, approved for reopening of the company and commencing production activities.

The letter partly read:” AMCON management has approved that the representative of the company be allowed to access, carry out all necessary activities, including the retooling of machines and equipment, re-installations, provision of water and rehabilitation and the entire factory building for eventual commencement of operations”

According to AMCON, in the letter signed by the Company Secretary, Bola Olushola, “the corporation and Multi-trex have made significant progress in negotiations, geared toward amicable resolution of this matter subject to regulatory approval .

We shall therefore keep you informed as soon as these approvals are obtained to enable the solicitors and parties prepare settlement terms to be registered in court as ‘Consent judgment to re-registered in court.”