Geregu Power addresses concerns over bond repayment obligations

By Udeme Akpan, Energy Editor

Geregu Power Plc has moved to reassure shareholders, investors, regulators and other stakeholders over concerns surrounding its bond repayment obligations, saying it is reviewing its financial commitments and remains committed to resolving outstanding challenges.

The company’s clarification followed recent online publications raising concerns about its ability to meet its bond repayment obligations.

In a statement signed by its Company Secretary, The Structure HQ, Geregu Power said the current Board and Management had undertaken a comprehensive review and reconciliation of the company’s transactions, liabilities, operational commitments, financing arrangements and other financial obligations.

The review, according to the company, is intended to ensure transparency, accuracy and prudent financial management.

“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,” the company said.

Geregu Power acknowledged concerns raised by shareholders, stakeholders and regulators, stating that it was actively engaging relevant parties and advisers towards resolving the issues.

The company said discussions were ongoing and that it remained committed to reaching an orderly and mutually beneficial outcome.

“Discussions and engagements are ongoing, and the Company will continue to act in good faith in fulfilling its responsibilities,” it added.

The power generation company also sought to reassure stakeholders that the issues would not distract it from its core responsibility of generating electricity for consumers.

The Board and Management reiterated their commitment to transparency, responsible corporate governance and constructive engagement with stakeholders.

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

The development comes amid growing investor attention to the financial obligations of power generation companies, particularly their ability to service debt and maintain operations in an electricity market facing liquidity and payment challenges.

Geregu Power, one of Nigeria’s major power generation companies, operates the Geregu power plant in Kogi State.

The company urged shareholders and other stakeholders to remain patient as engagements towards resolving the challenges continue.

“The Board and Management appreciate the patience, understanding, and continued support of all stakeholders during this period,” it said.

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