AEDC Gives Clarification On Directorship Tussle

There was no withdrawal or replacement of directors at the Abuja Electricity Distribution Company Plc, (AEDC) a portfolio company of KANN Utility Company Limited, this is according to a notice from the Receivers/Manager of KANN Utility company. 

According to the Receivers/Manager of the company,  the purported media reports stating the withdrawal and replacement of Directors should be disregarded, warning that anybody or group who deals with them does so at their risk. 

In a letter signed on behalf of the Receiver /Manager by Senior Advocate of Nigeria, wole Olanipekun titled “Recent Developments in KANN Utility Company Limited (in Receivership) of Abuja Electricity Distribution Company Plc” said a subsisting federal High Court order bars such action from taken place. 

“My attention has been drawn to the recent reports in the media with respect to the purported withdrawal and replacement of certain directors of Abuja Electricity Distribution Company Plc, (AEDC) a portfolio company of KANN Utility  Company Limited of which I am the duly appointed receive and managed (Receiver/Manager). 

“The general public, all secured and unsecured creditors and debtors, shareholders, Officers, employees, agents and all contractors counterparties of AEDC and Kann should please take note of the following.

“By a deed of appointment dated 29th January 2020, I was appointed and as the Receiver and manager over all the assets and undertakings of KANN.

Following my appointment as Receiver and manager, orders in the aide of the receivership was made by the Federal High Court, Lagos dated 19th February 2020.

The receiver /Manager added that was duly appointed by the board of directors of Kann Utility Company Limited. 

“Further to my appointment, all powers of the board of directors of KANN in relations to all its assets and undertakings (including, for the avoidance of doubt, its controlling shareholdings in AEDC) have ceased and have been conferred on me in my capacity as the Receiver/ Manager of KANN. 

“The purported withdrawal and replacement of the Directors of AEDC was undertaken without my involvement or consent. It also constitute an attempt to interfere with and disrupt the ongoing receivership and therfore illegitimate and at variance with the subsisting order of the Federal High Court.

“Whilst actions are being taken to rectify the situation and ensure that relevant actors face consequences, I must hereby reiterate that my position  as Receiver / Manager of KANN remains valid in full effect under the protection of the court. 

“Accordingly, any person who /wish deals or continues to deal with the directors of KANN or the purported new directors of AEDC in relation to the business, assets, or undertakings of KANN or AEDC from the date hereof, does so, solely at his /her or its own risk. Including potentially, the risk of being party to action undertaken In contempt of court.”

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