ABUJA — Chairman of the Board of Directors of Geregu Power Plc, Senator Abdul’aziz Abubakar Yari, has personally committed funds to address the company’s immediate outstanding bond obligation, saying the move is aimed at protecting bondholders and restoring investor confidence.
Yari disclosed this in a statement issued on Friday, explaining that the bond and related 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 resolution, adding that they had expressed willingness to continue discussions towards a lasting and amicable settlement.
Yari said his immediate priority was to ensure that the outstanding obligation did not unsettle bondholders, weaken 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,” he said.
The Geregu Power chairman stressed that his intervention should not be construed as an admission of personal liability or an indication that the current Board or management created the obligation.
Rather, he said, the decision was taken in the interest of protecting the company and preserving confidence in the power firm.
Yari said he had remained closely engaged with the Board, management, financial and legal advisers and other relevant stakeholders since the matter emerged, with the aim of establishing how the situation arose and determining the appropriate steps towards resolving it.
He clarified that his financial intervention would address the immediate concern of bondholders but would not end the underlying dispute, as discussions among 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.
Yari said protecting investor confidence remained his overriding concern, warning that rebuilding confidence after it has been lost could be costly.
“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 while efforts continue towards a final resolution.
Yari also pledged to keep stakeholders informed as discussions over the bond obligation progress.
