Peacock company, a paint manufacturing firm in Etinan local government area of Akwa Ibom State, requires a bailout of N70 million to enable it resume production and save the plant from liquidation due debts owed creditors.
The company, known for the quality of its products, is under a receivership appointed by its creditors following management’s inability to settle initial debt of about N32 million obtained from a first generation bank more than three years ago.
According to checks by BusinessDay in Uyo, though the company is operating ‘skeletal’ services, most of the workers had been sent home while ongoing negotiations between the creditors and the management have failed to yield any dividend.
It was learnt that due to the inability of the management to settle the initial debt of N32 million, interest on the loan continued to increase until the total debt owed got to N70 million, a development which led to the appointment of a receiver to take over the company.
Read also: Akwa Ibom announces plan to reactivate paint company
At a meeting between the management of the company and a group of investors from Etinan (where the plant is located) and the officials of the state investment corporation, the state government was optimistic that investors would be found for the company.
According to Celestine Etouwem, the director general of Akwa Ibom Invest Corporation who spoke at the meeting, there was need for core investors to look for fresh capital to inject into the company adding that the receiver has not reached a point of the selling the plant due to the debt owed.
“The meeting was called to address the future of Peacock paint, steps taken so far to encourage the owners both the directors and shareholders to get together and decide on the way forward for the company. The company got a loan from a bank, was not able to pay, the bank appointed a receiver to manage and recover the debt or sell the company, the receiver is there and talking to us but the receiver has not reached the point of selling the plant,’’ he said.
He said it was important for key stakeholders to be part of the drive to reactivate the plant adding that names of prospective investors that have indicated interest to collaborate with the state government in its industrialisation scheme would be made available to the stakeholders in a bid to provide a source of funding for the company.
