The Chairman of the Board of Directors of Geregu Power Plc, Sen. Abdul’aziz Abubakar Yari, has announced plans to personally provide funds to address the company’s immediate outstanding bond obligation, in a move aimed at protecting bondholders and restoring investor confidence.
Yari, in a statement issued on Friday, said the bond and the underlying arrangements were made under the former ownership and management of the power company, before the current ownership and board assumed responsibility.
He said his decision to intervene personally was motivated by the need to protect bondholders, shareholders and the wider interests of Geregu Power while discussions continue with the former owners and management towards a permanent resolution of the matter.
According to him, the former owners and management have indicated their willingness to continue discussions aimed at reaching a lasting and amicable solution.
Yari said his immediate concern was to prevent the outstanding obligation from unsettling investors or affecting the operations of the company.
“For that reason, and notwithstanding that the day-to-day management of this obligation is not mine to carry, I have decided, in my capacity as Chairman, to personally step in and provide the funds required to address the immediate outstanding bond obligation,” he said.
The chairman, however, clarified that his intervention should not be interpreted as an admission of personal liability or an indication that the current board or management was responsible for the obligation.
“I want to be precise about what this means and what it does not mean. This is not an admission that the obligation is personally mine, nor is it a judgement that the current Board or management created this problem,” Yari said.
He described the intervention as a decision taken in the interest of Geregu Power as an institution.
Yari said that since the issue emerged, he had remained actively involved in discussions with the board, management, financial and legal advisers and other relevant stakeholders to establish how the situation arose and determine the appropriate steps towards resolving it.
He stressed that the proposed payment would address the immediate concern facing bondholders but would not automatically bring the underlying dispute to an end.
“Our objective, ultimately, is a final, mutually acceptable resolution: fair treatment or reimbursement of the funds I am advancing now to protect the company, and clear, dependable arrangements for the company’s future obligations to bondholders,” he said.
The Geregu Power chairman said investor confidence remained one of his major concerns, warning that disputes involving financial obligations could have wider consequences if allowed to undermine confidence in the company.
He said protecting the interests of bondholders and shareholders was critical to maintaining the credibility and stability of the company.
“Confidence, once shaken, is expensive to rebuild. I would rather act early than watch that happen,” he said.
Yari assured bondholders, shareholders, employees, business partners and other stakeholders that Geregu Power would continue to honour its obligations and maintain sound corporate governance.
“To our bondholders, our shareholders, and everyone who has built something lasting with Geregu Power: this company’s obligations will be honoured, its governance will remain sound, and its future is not in question,” he stated.
He also pledged to keep stakeholders informed as discussions with the former owners and management progress.
The chairman’s intervention comes as the company seeks to address the immediate bond obligation without allowing the dispute over its origin and responsibility to affect Geregu Power’s operations or relationships with investors and other stakeholders.
Yari reiterated that the parties would continue discussions towards a final and mutually acceptable resolution of the matter.
