By Gbenga Agbana

Friday, 3 Dec 2010

Okitipupa Oil Palm Plc, a company quoted on the Nigerian Stock Exchange, currently under receivership over a debt of about N160m, will soon begin full operations.

The Ondo State Government has concluded arrangements to pay the debt and return the company to profitability.

At a meeting attended by top government functionaries in Akure on Thursday, it was agreed that the state would bail out the company.

Those in attendance were shareholders of the company, the Senior Special Assistant to the Governor on Publi-Private Partnership, Prof. Bode Bolodeoku, a director, Mr. John Akinleye, some commissioners and the Chairman, Ibadan Zone Shareholders Association of Nigeria, Chief Aderemi Oyepeju.

A competent source at the meeting told our correspondent that the directors and some shareholder groups met with the management of the Securities and Exchange Commission last week Tuesday, adding that all the stakeholders were advised to meet with Ondo State Government on how the debt of the company could be paid.

Speaking to our correspondent on the outcome of the meeting with the state government on Thursday, Oyepeju said, ”The company was under receivership by Guaranty Trust Bank Plc over about N160m debt since last June.

But the Ondo State Government has decided to bail out the company from its indebtedness and if possible convert the money to deposit for shares.”

Oyepeju said shareholders agreed at the meeting that the state government would pay GTBank and help the company to resume full operations and regain its position in the industry, adding that the board would be reconstituted before the end of the month.

He said, ”It was also resolved at the meeting that there should be corporate governance and due diligence and withdrawal of all court cases. The state government will pay the bank and help the company to retain its position in the industry.

“The company is currently being operated by the receiver managers, but it will be returned to the original owners soon.

”Before the end of this month, I believe the company‘s board will be reconstituted and the company will resume full operations.”

Source: Punch