Connect with us

Business

$122m debt: AEDC investor, BPE, NERC others agree on out-of-court settlement

Published

on

Following the takeover of Abuja Electricity Distribution Company (AEDC) by United Bank of Africa (UBA), the company’s core investors, CEC Africa Investment Limited and KANN Consortium had agreed on an out-of-court settlement with the Bureau of Public Enterprise (BPE), National Electricity Regulatory Commission (NERC) and other parties in the matter.

UBA took over AEDC’s operation following KANN’s inability to meet its $122 million debt obligation to UBA.

KANN used the funds to acquire a 60 percent stake in AEDC in 2013.

BPE and NERC had approved the takeover and change in management.

This led to a confrontation between UBA and KANN, with the latter and CEC Africa filing a joint suit against the bank, Attorney General of the Federation (AGF) and Central Bank of Nigeria (CBN), BPE, Ministry of Finance, AEDC, and United Capital Trustees Limited at the Federal High Court, Abuja.

READ ALSO: UBA takes over AEDC, as $122m debt forces investor, Kann Consortium out

KANN and CEC Africa asked the court on December 8, 2021, to refrain BPE, CBN and other defendants from interfering in AEDC’s operation or take action that will lead to takeover, forfeiture, transfer, reduce or dilute KANN’s 60 percent stake in the power company.

The court granted the plaintiff’s prayer and ordered parties involved to maintain status quo pending the ruling on the suit on the takeover of the electricity distribution company.

However, at Wednesday’s proceedings, both CEC Africa and KANN Consortium informed the court that the plaintiffs and the defendants will settle the case out of court.

Counsels to the defendants confirmed the development.

Following the agreement, the court adjourned the case till April 25 with both parties expected to return with a status report on the out-of-court court settlement.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

TEST

Investigations