FTN Cocoa Processors Plc is facing threat to its existence as bankruptcy looms.
The once thriving enterprise, which has fallen on hard times in recent years said in a statement released to the Nigerian Stock Exchange (NSE), that it had not held an Annual General Meeting (AGM) or declared dividends over the last two years due to financial difficulties sourcing working capital to procure cocoa beans.
It further said that various efforts being made by the company to secure working capital both locally and internationally were yet to yield desired results.
“One of the company’s foreign partners, Transmor Commodity USA, unfortunately, had financial problems and went into liquidation; this led to a virtual closure of operations by FTN for over two years,” the statement read.
“Staff salaries, statutory payments, secretary and auditors’ fees with other financial obligations including listing fee are all outstanding. Moreover, almost all the members of staff of the company have resigned their employment due to the company’s inability to pay their salaries.”
The company further stated that its head office was taken over by a bank for failure to meet its exposure to the bank. This has forced FTN Cocoa to go for a rented apartment as operational office.
The statement added that “In view of the above, the management of FTN Cocoa has been scouting for funds to save the company from total collapse. The company is glad to notify its stakeholders that some level of progress is being recorded in respect of the expected funding and that there is hope the company will soon come out of its financial problem,” FTN said.
FTN Cocoa Processors Plc which was formerly registered as Fantastic Traders Nigeria Limited, a Limited Liability Company was incorporated in 1991.
It commenced processing of cocoa beans through a third-party (Stanmark Cocoa Processing Company Limited) in 1995 for conversion of cocoa beans into cocoa butter and cocoa cake/powder.
The company later extended its third-party processing activities to Ile-Oluji, Cocoa Cooperative, Cocoa Akure and Cocoa products, Ede Osun State.