$122 million debt: AEDC investor, BPE and others from NERC agree to out-of-court settlement
Following the takeover of Abuja Electricity Distribution Company (AEDC) by United Bank of Africa (UBA), the company’s main investors, CEC Africa Investment Limited and KANN Consortium had agreed to an amicable settlement with the Bureau of Public Enterprise (BPE), National Electricity Regulatory Commission (NERC) and other interested parties.
UBA took over operations from AEDC following KANN’s inability to service its $122 million debt to UBA.
KANN used the funds to acquire a 60% stake in AEDC in 2013.
BPE and NERC had approved the takeover and change of management.
This led to a confrontation between UBA and KANN, with the latter and CEC Africa filing a joint complaint against the bank, the Attorney General of the Federation (AGF) and the Central Bank of Nigeria (CBN), BPE, the Ministry of Finance, AEDC and United Capital Trustees Limited at the Federal High Court in Abuja.
READ ALSO: UBA Takes Control Of AEDC, As $122M Debt Forces Investor Kann Consortium To Pull Out
KANN and CEC Africa asked the court on December 8, 2021 to restrain BPE, CBN and other defendants from interfering in the operation of AEDC or taking any action that would lead to the takeover, forfeiture, transfer, reduction or dilution of KANN’s 60% stake in the electricity company. .
The court granted the plaintiff’s request and ordered the parties involved to maintain the status quo pending judgment on the lawsuit relating to the takeover of the electricity distribution company.
However, during Wednesday’s proceedings, CEC Africa and KANN Consortium informed the court that plaintiffs and defendants would settle the matter out of court.
Lawyers for the defendants confirmed the development.
Following the settlement, the court adjourned the case until April 25, with both parties expected to return with a progress report on the out-of-court settlement.
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