Section 48: Powers of the Corporation to act as, or Appoint, a Receiver for a Debtor Company. (amended by Section 6 of the Asset Management Corporation of Nigeria (Amendment) Act, 2015 and Section 14 of the Asset Management Corporation of Nigeria Amendment Act, No. 2, 2019)

(1) The Corporation shall have powers to act as, or appoint, a receiver for a debtor company whose assets have been charged, mortgaged or pledged as security for an eligible bank asset acquired by the Corporation,
(2) A receiver under this Act shall have power to:
(a) realize the assets of the debtor company ;
(b) enforce the individual liability of the shareholders and directors of the debtor company; and
(c) manage the affairs of the debtor company.
(3) The powers of a receiver, acting under the provisions of this section, shall be exercisable over all the assets and entire undertaking of the debtor company notwithstanding that only a part of the assets of the debtor company was charged, mortgaged or pledged as security in relation to the eligible bank asset acquired by the Corporation.
(4) Where a receiver under this section elects to manage the affairs of a debtor company or other debtor entity under subsection (2) (c), it shall give notice of its election by publication in at least two newspapers with nationwide circulation.
(5) A receiver under this section that elects to manage the affairs of a debtor company or debtor entity is, on the publication of the notice referred to in subsection (4), entitled to take over the management of the affairs of the debtor company or debtor entity in the name and on behalf of the debtor company or debtor entity for the benefit of the debtor company or debtor entity and the general body of creditors of the debtor company or debtor entity.
(6) A receiver managing the affairs of a debtor company or debtor entity under this section is deemed to be a fiduciary of the debtor company or debtor entity and shall strictly adhere to debt priority ranking prescribed under section 494 of the Company and Allied Matters Acts.
Cap. C20, LFN, 2004.
(7) Subject to subsection (9) and upon the publication of the notice of election referred to in subsection (4):
(a) no action, suit or proceedings, including any judgment enforcement proceeding, shall be commenced or maintained against the debtor company or the receiver or in relation to the receiver's management of the affairs of the debtor company, and all claims, actions, suits or proceedings, including judgment enforcement proceedings, against the debtor company or receiver shall stand automatically suspended and stayed for one year from the date of the publication of the notice of election to manage the affairs of the debtor company or such extended period as the Court may grant under subsection (10):
Provided that claims relating to wages and other entitlements of existing staff of the debtor company or debtor entity shall not be suspended or stayed;
(b) no other secured creditor or judgment creditor shall appoint or apply to appoint a receiver or liquidator over any asset or part or the whole undertaking of the debtor company or debtor entity or take any step towards enforcing or realising any security which it may hold over the assets or undertaking of the debtor company or debtor entity or towards enforcing any judgment against the debtor company or debtor entity during the period referred to in paragraph (a) as may be extended by the Court under subsection (1).
(8) A receiver, acting under subsection (2) (c), shall, within 90 days of the publication of the notice referred to in subsection (4), cause to be prepared and submitted to the Corporation a detailed and comprehensive plan for the rehabilitation of the debtor-company or debtor entity.
(9) Where a receiver, acting under subsection (2) (c), fails to comply with the provisions of subsection (8), the provisions of subsection (7) shall cease to apply.
(10) The Court may, upon an ex-parte application by a receiver before the expiration of the one year period specified under subsection (7) (a), extend the one year period for a further period of one year if the Court is satisfied that the receiver has, within the- initial one year significantly stabilised the affairs of the debtor company or debtor entity and that there is a reasonable prospect that the debtor company or debtor entity can be rehabilitated or restructured for the benefit of all secured creditors of the debtor company or debtor entity.
(11) Subject to subsection (12), a receiver managing the affairs of a debtor company or debtor entity under this section shall manage the debtor company or debtor entity in the interest of the company's creditors as a whole and with the objective of rescuing the company as a going concern or achieving a better result for the company's creditors as a whole than would be likely if the company were wound up.
(12) Notwithstanding the provisions of subsection (11) or any other provision of this Act, a receiver managing the affairs of a debtor company or debtor entity under this section may, where he determines that the objectives in subsection (11) can no longer be achieved:
(a) realise property for the purpose of making a distribution to secured creditors or preferential creditors; and
(b) in the name and on behalf of all the secured creditors of a debtor company, restructure the debtor company by way of a hive down and for this purpose, may transfer the assets of the debtor company over which security exists, up to the value of the indebtedness of the debtor company to all its secured creditors, to a new company incorporated by the receiver for that purpose and to operate or lease the transferred assets through the new company or sell the new company to which the secured assets have been transferred for the benefit of secured creditors whose assets were transferred to the new company as part of the hive down:
Provided that a receiver shall not operate the new company for more than one year from the date of the transfer of the assets of the debtor company over which security exists except with the unanimous approval of all the secured creditors.
(13) Where a receiver managing the affairs of a debtor company elects to undertake a restructuring by way of a hive down, the assets of the debtor company over which security exists which are to be transferred shall be independently valued and, upon transfer to the new company established by the receiver, the new company is deemed to be capitalised to the tune of the value of the transferred assets, and shares in the new company shall be allotted among the secured creditors in proportion to the value of assets over which they hold a security interest taking account of the nature of the security interest and any security interest that may be held by other creditors in the same assets.
(14) Upon the allotment of shares to the secured creditors in the new company in the manner contemplated in subsection (13), the security interest held by the secured creditors in the assets transferred to the new company, as it relates to the new company, stand discharged and the hitherto secured creditors' only claim on the new company shall be the shares of the new company allotted to each secured creditor in accordance with subsection (13).
(15) No stamp duty or other tax, imposition or fee on share capital, registration of share capital or transfer of assets shall be chargeable on the share capital of a new company incorporated by a receiver under subsection (11) and capitalised under subsection (12) or in relation to the transfer of assets.
(16) Whenever it deems necessary, the Corporation, acting In consultation with other secured creditors of a debtor company or debtor entity being managed by a receiver under this section, may direct such receiver to appoint an advisory committee consisting of at least persons with industry knowledge and expertise in the business being undertaken by the debtor company or debtor entity from among persons to the nominated by the Corporation, to advise the receiver, and the receiver shall appoint the advisory committee within seven days of the directive and regularly consult with, and take account of the advice of, such advisory committee.