The chairman of the Board of Directors of Geregu Power Plc, Senator Abdul’aziz Abubakar Yari, has moved to personally fund the immediate settlement of the company’s outstanding bond obligation to protect bondholders and restore investor confidence.
Yari, in a statement from his media office on Friday, said the bond was issued and the underlying arrangements entered into under Geregu Power’s former ownership and management, before the current ownership and board assumed control.
He decided to intervene personally because the unresolved obligation could unsettle bondholders, undermine confidence in the company, and affect the interests of shareholders and other stakeholders.
‘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 stressed, however, that his intervention should not be construed as an admission of personal liability for the obligation or an indication that the current board and management were responsible for its emergence.
‘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. It is a decision made in the interest of the institution I am privileged to chair,’ he said.
Yari said the company was already in discussions with its former owners and management about the circumstances surrounding the bond obligation and how it should ultimately be resolved.
According to him, the former owners and management have indicated their willingness to continue discussions towards a lasting and amicable settlement.
His intervention will address the immediate obligation to bondholders while discussions continue on the underlying dispute.
‘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 chairman said he had remained closely involved with the board, management, financial and legal advisers, and other relevant parties since the matter emerged, to establish how the situation arose and determine the appropriate steps for its resolution.
He maintained that protecting investor confidence remained his overriding priority, warning that a dispute of this nature should not disrupt the company’s operations or undermine the confidence of bondholders, shareholders, and business partners.
‘Confidence, once shaken, is expensive to rebuild. I would rather act early than watch that happen,’ he said.
Yari assured bondholders, shareholders, employees, partners and other stakeholders that Geregu Power’s obligations would be honoured and that the company would maintain sound corporate governance as efforts to resolve the underlying matter continue.
‘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 said.
He also pledged to keep stakeholders informed as discussions progress towards a final resolution.