Deap Capital Eyes Return to Profitability, Meets AMCON on Debt

Deap Capital

By Modupe Gbadeyanka

Efforts are presently being made by the board and management of Deap Capital Management and Trust Plc to resolve the company’s indebtedness and return it to profitability.

Last week, it was reported that assets belonging to Deap Capital were confiscated by the Asset Management Corporation of Nigeria (AMCON) over N1.6 billion.

The debt was said to have been purchased from Zenith Bank and First City Monument Bank in 2011 during the first phase of eligible bank assets (EBA) purchases.

It was further reported that the action followed an order granted to AMCON by Justice John Tsoho of a Federal High Court sitting in Lagos on January 28, 2015.

According to a statement issued by the spokesman of AMCON, Mr Jude Nwauzor, another judge, Justice Abdullah Muhammad Liman, also granted the corporation leave to attach and sell properties traced to the chief promoter of Deap Capital, Mr Emmanuel Ugboh.

As a result, the agency, set up by the federal government, seized three properties of the firm at 38, Dele Orisabiyi Street, Okota-Isolo, Lagos; No. 75 Femi Kila Street (now renamed 75, Oba Kabiru Agbabiaka Street) Okota, Lagos;  and 79, Femi Kila Street (now renamed 75, Oba Kabiru Agbabiaka Street), Lagos through its debt recovery agent.

But reacting, Deap Capital said the properties taken over by AMCOM belonged to one of its former directors.

In a statement signed the company’s scribe, Ms Yetunde Fashesin-Souza, the firm, which confirmed the N1.6 billion debt, said it was working hard to resolve the issue, noting that steps to return to profitability were being taken.

“The company is resolving its indebtedness to AMCON. The company is working with its stakeholders to ensure its return to profitability.

“The company is resolving its operational challenges most notably the recovery of its operational licenses. The company’s board of directors is committed to resolving all issues,” the statement said.

Deap Capital is a financial services institution in Nigeria operating in the capital market, mortgage banking and oil and gas sectors.

The organisation provides services for fund management, portfolio management, capital market/financial advisory and issuing house services.

According to Deap Capital, AMCON holds 20 per cent stake in the company.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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