Oando Plc to embark on Financial Restructuring

Oando Plc has notified the Nigerian Exchange and the investing public of the outcome of the resolutions passed at the recently concluded 45th Annual General Meeting. A resolution was given to the financial restructuring of the Company, in compliance with the Companies and Allied Matters Act.

The Company stated thus:

In order to address and improve the Company’s financial health and long-term viability, the board of directors is authorized to implement the following remedial actions and undertake all necessary and incidental activities required to effect the proposed restructuring and complete the following transactions, with modifications:

Debt Transfer and Modification: That the repayment of long-term receivables owed to the Company’s subsidiaries by related entities be accelerated and novated to the Company (with or without modifications), to consolidate receivables within the Group and improve financial clarity and Management.
Debt-To-Equity Swap and Settlement: That the Company accepts Shares as settlement for the debts owed to it by the borrowers, further to sub-resolution (A) above, thereby reducing overall receivables and enhancing financing clarity.
Distribution: That the Company may cause shares received pursuant to subresolution (B) above, and/or the cash equivalent, to be distributed to its shareholders on record at date(s) as may be determined by the Board of Directors prior to any distribution, from time to time, on a pro-rata basis.