Geregu Power Plc has moved to reassure investors and other stakeholders over concerns about its ability to meet its bond repayment obligations, saying it is reviewing its financial commitments and working with relevant parties to resolve outstanding issues.
 
The clarification followed recent reports raising concerns about the company’s ability to meet its debt obligations.
 
In a statement signed by its Secretary, The Structure HQ, the company said the board and management had started a detailed review of its transactions, liabilities, operational commitments, financing arrangements and other financial obligations.
 
The company said the review was aimed at establishing a clear position on its financial commitments and ensuring proper financial management.
 
Geregu Power said it had also begun discussions with relevant stakeholders and advisers to address the issues and find an orderly resolution.
 
It said the engagements were ongoing and that it remained committed to meeting its responsibilities to shareholders, investors, regulators and other stakeholders.
 
The company said the financial issues would not affect its main responsibility of generating electricity and supporting power supply to the national grid.
 
The board and management also reaffirmed their commitment to transparency, good corporate governance and regular engagement with stakeholders.
 
Geregu Power said it would continue to provide the market with updates on important developments affecting the company, in line with regulatory requirements.
 
The development comes amid growing concerns over the financial position of power generation companies in Nigeria, particularly their ability to service debt and maintain operations amid persistent liquidity and payment challenges across the electricity market.
 
The company appealed to shareholders and other stakeholders for patience and understanding as discussions aimed at resolving the outstanding issues continue.