Omatek restructures financial facility

Omatek Ventures Plc said it has it has restructured its credit facilities with its bankers following the intervention of the Central Bank of Nigeria (CBN).

The company further revealed that for the past three years it funded its activity with the internally generated revenue without the support of banks’ money.

Speaking to capital market correspondents ahead of its Annual General Meeting (AGM) scheduled to hold on Thursday, 17th May, 2012, Managing Director/Chief Executive Officer, Omatek Ventures, Engr. Florence Seriki, said, “We are happy that we survived the turbulent period when our banks refused to lend to the Small and Medium Scale Enterprises (SMEs) due to the banking sector crisis that culminated to the CBN’s intervention. Afribank Plc, our main banker had already blacklisted and listed us under the Credit Risk Management System (CRMS), hence we could not be able to fund our consumer scheme which was our main source of income and effectively deprived the company of its working capital, thereby threatening the corporate existence of the company

“However, we thank God that all this is over as the Omatek Board made formal complaints to CBN and Asset Management Corporation of Nigeria (AMCON) and met severally with the Executives of AMCON and CBN at round table meeting, where it was resolved that AMCON would return Omatek back to the defunct Afribank, while CBN would release Omatek from the CRMS list.

“By December 2011, AMCON and CBN restructured the final debt after they deducted the arbitrary interest accrued and credited the company with the N300 million owed Omatek to reduce the company’s accrued debt. The final balance outstanding was restructured for a period of seven years with one year moratorium.”

Seriki, further disclosed that Omatek has renewed its offshore facilities after the 10 year old facility was suddenly terminated by Afribank.

She noted that Omatek will return to its past glory after 2012 when shareholders will begin to reap bountifully from their investment.

According to her, “Our shareholders understand the situation and environment where we operated upon. We really faced many challenges arising from the restructuring of the Nigerian banking sector; thank God we are out of it. We will manage the consumer schemes with the various states governments. We already have eight banks in this scheme.

Also today, our factory stills source its raw materials from first class manufacturers in Asia called- the BIG Players; these are factories where the foreign brands purchase from. Quality is therefore assured.”

The company in its financial year ended December 31, 2011 posted a turnover of N348,973 as against N1.048 billion in 2010; Net fixed Assets stood at N1.976 billion as against N2.298 billion.

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