Sources: Geregu Has Paid N6bn to Bond Investors after Default
Geregu Power Plc has paid N6.03 billion owed investors under its N40.09 billion Series 1 Senior Unsecured Bond, according to sources familiar with the transaction, weeks after the company defaulted on scheduled interest and principal payments.
Specifically, the payment, which amounts to N6,026,093,363.10, brings some relief to investors and could ease concerns that had mounted in the capital market following the company’s failure to meet its debt obligations when due.
Sources close to the matter confirmed the payment, although Geregu Power had yet to make a public announcement on the development as of the time of this report last night.
The default had triggered concerns among investors and analysts over Geregu Power’s liquidity position and its ability to service its obligations amid a sharp deterioration in its financial performance.
