Geregu Power Plc has launched a review of its transactions and financial obligations following recent online publications raising concerns about the company’s bond repayment obligations.
In a statement sent to the Nigerian Exchange (NGX), the power generation company said the exercise is aimed at ensuring transparency, accuracy and prudent financial management across its operations.
“Since assuming responsibility for the Company’s affairs, the current Board and Management have undertaken a comprehensive review and reconciliation of the Company’s transactions, liabilities, operational commitments, financing arrangements, financial obligations and related corporate documentation,” Geregu stated.
The company acknowledged concerns raised by shareholders, stakeholders and regulators, and said it remains actively engaged with relevant advisers on resolving the issues.
“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,” it said.
The Company also reiterated its core mandate of power generation, stating that it remains fully committed to supplying electricity to consumers despite the ongoing financial review.
The Board said it is committed to responsible corporate governance and transparency and will provide the market with updates on material developments in line with regulatory requirements.
“The Board and Management remain committed to transparency, responsible corporate governance and constructive engagement with all stakeholders,” the statement said.
It added that “the company will continue to provide the market with appropriate updates on material developments concerning its performance in accordance with applicable regulatory requirements.”
Geregu Power defaulted on its N40.09 billion Series 1 Senior Unsecured Bond, marking Nigeria’s first major corporate bond default in several years. According to updates from the FMDQ Securities Exchange, the power generation firm missed both its eighth semi-annual coupon obligation and its fourth scheduled principal repayment midway through the bond’s life
Geregu Power Plc is one of Nigeria’s leading power generation companies listed on the Nigerian Exchange.
