Geregu Bond: Yari Vows to Protect Bondholders

…Says debt predates current ownership

Chairman of the Board of Directors of Geregu Power Plc, Senator Abdul’aziz Abubakar Yari, has announced his decision to personally provide the funds required to address the company’s immediate outstanding bond obligation, as part of measures to protect bondholders, preserve investor confidence, and safeguard the interests of the company and its shareholders.

In a statement personally signed by him, Senator Yari emphasised that the bond in question was issued and the underlying arrangements were made under the former owners and management of Geregu Power, before the current ownership and Board assumed responsibility for the company.

He disclosed that discussions are already ongoing with the former owners and management regarding the circumstances surrounding the obligation and its ultimate resolution, adding that they have indicated their willingness to continue engaging towards a lasting and amicable solution.

Senator Yari said that while the underlying matter continues to be addressed between the parties, his immediate priority as Chairman is to ensure that it does not unsettle bondholders, undermine investor confidence, or interfere with the operations of the company.

“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,” Senator Yari said.

“I want to be precise about what this means and what it does not mean. 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.”

Senator Yari explained that since the matter came to light, he has remained closely engaged with the Board, management, financial and legal advisers, and other relevant parties to understand precisely how the situation arose and determine what is required to resolve it properly.

He stressed that his intervention addresses the immediate concern facing bondholders but does not close the underlying matter, with the parties continuing to work towards a final and mutually acceptable resolution.

“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 Chairman said his overriding concern throughout the matter has been the confidence investors and partners place in Geregu Power, stressing that a dispute of this nature, however it originated, should not be allowed to unsettle bondholders, affect shareholders, or interfere with the operations of the company.

“Confidence, once shaken, is expensive to rebuild. I would rather act early than watch that happen,” he said.

Senator Yari assured bondholders, shareholders, employees, partners, and other stakeholders that Geregu Power’s obligations would be honoured and that the company would continue to maintain sound corporate governance while the parties work towards a final resolution.

“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 pledged to keep stakeholders informed as the matter progresses towards final resolution.