Geregu Power addresses concerns over failed bond repayment

GEREGU Power Plc has reassured shareholders, investors and regulators of its commitment to resolving concerns surrounding its bond repayment obligations.

The power generation company issued the clarification following recent online publications that raised questions about its ability to meet its bond repayment obligations.

Geregu said its current board and management had conducted a comprehensive review and reconciliation of the company’s transactions, liabilities, operational commitments, financing arrangements and other financial obligations since assuming responsibility for its affairs.

According to the company, the exercise is aimed at ensuring transparency, accuracy and prudent financial management.

“Geregu remains actively engaged with relevant stakeholders and advisers regarding the resolution of the various challenges and is committed to achieving an orderly and mutually beneficial outcome,” the company said in a statement issued on Friday.

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The company acknowledged concerns raised by shareholders, stakeholders and regulators, adding that discussions with relevant parties were still ongoing.

Geregu said it would continue to act in good faith in meeting its responsibilities while maintaining its focus on power generation for consumers.

The board and management also reaffirmed their commitment to transparency, responsible corporate governance and constructive engagement with stakeholders.

The company said it would continue to provide the market with updates on material developments concerning its performance in line with applicable regulatory requirements.

Backstory

Geregu Power defaulted on its N40.09 billion Series 1 Senior Unsecured Bond, according to the FMDQ Securities Exchang
The missed obligations include the 8th coupon payment and 4th principal bullet repayment.
The default occurred alongside lower mid-year revenues and high industry-wide sector debts.

However, management has started a complete review of all corporate records, liabilities, and financing arrangements