The Chairman of the Board of Directors of Geregu Power Plc, Senator Abdul’aziz Abubakar Yari, has moved to address the company’s immediate outstanding bond obligation, personally committing funds to protect bondholders and restore investor confidence.
In a statement issued on Friday, Yari said the bond and the underlying arrangements were entered into under the former ownership and management of Geregu Power, before the current ownership and Board assumed responsibility for the company.
He said discussions were ongoing with the former owners and management over the circumstances surrounding the obligation and its eventual resolution, noting that they had indicated their willingness to continue discussions towards a lasting and amicable settlement.
He said his immediate priority is to ensure that the matter does not unsettle bondholders, undermine investor confidence or disrupt the company’s operations.
“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,” Yari said.
He maintained that his intervention should not be interpreted as an admission of personal liability or an indication that the current Board or management created the obligation.
He explained that the decision was taken in the interest of protecting the institution he leads and preserving confidence in the company.
He said he had remained closely involved with the Board, management, financial and legal advisers and other relevant stakeholders since the matter came to light, in order to establish how the situation arose and determine the appropriate steps towards resolving it.
He emphasised that his financial intervention would address the immediate concern of bondholders but would not bring the underlying dispute to an end, as discussions between the relevant parties would continue.
“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 protecting investor confidence remained his overriding concern, warning that a loss of confidence could have costly consequences for the company.
“Confidence, once shaken, is expensive to rebuild. I would rather act early than watch that happen,” he said.
He assured bondholders, shareholders, employees, partners and other stakeholders that Geregu Power would honour its obligations and maintain sound corporate governance as efforts continue towards a final resolution.
He also pledged to keep stakeholders informed as discussions on the matter progress.
