Two banks have taken over one of Nigeria’s largest Pharmaceutical manufacturing companies, Evan Medicals PLC due to a loan default.

First Bank and Skye Bank took over the management of the company after a protracted N5.7 billion debt impasse.

Confirming the development in a statement signed by Adesua Akintemi on behalf of Evans Medical Plc, the company said the banks have taken over its assets used as collateral.

“Evans Medical Plc would like to announce that the company’s bankers (Skye Bank Plc and First Bank of Nigeria Limited) have served the company with an ex-parte order of the federal high court dated 4th July, 2017, granting them right to take over the company’s assets used as collateral against facilities granted to the company by its bankers due to loan default,” the notice read.

Akintemi, however, said the company has begun discussions with the two lenders with a view to arriving at an amicable resolution of the matter, adding that the discussions are progressing favorably .

The company has in the last three years been finding it difficult to meet its financial obligations.

In its last published annual report in 2014, the company posted a loss of about N1 billion and had just N1.2 billion left as Net Assets at the time.

The report also showed that the company owed Skye Bank, First Bank and the Bank of Industry (BOI).

BOI’s loans were N1.1 billion at the time.

The inability of the company to file its Quarterly Compliance Report forced the Nigerian Stock Exchange to place it on de-listing watch-list.

Evans Medical Plc last released an annual report in 2014, its last interim report was in the second half of June 2015.

Meanwhile, some finance experts claim Nigeria is ready to re-open to investors.