Fortis Global Insurance Plc is seeking shareholders’ approval for a comprehensive debt restructuring plan that could see part or all of its outstanding N5.74 billion bond obligation converted into equity.
The proposal will be presented at the company’s 28th Annual General Meeting (AGM), where shareholders will consider a series of special resolutions aimed at providing the board with the authority to implement the restructuring programme.
The plan centres on the settlement of the Daewoo Zero Coupon Bond issued on December 14, 2009, with a face value of JPY650 million. As of March 31, 2026, the outstanding obligation under the bond stood at approximately N5.74 billion.
Under the proposed framework, the debt could be settled through a combination of cash repayments, conversion into company shares, or other negotiated arrangements agreed with bondholders.
Shareholders will be asked to authorise the board to engage in binding negotiations with creditors and determine the final commercial and legal terms of any settlement deemed appropriate for the company.
A key aspect of the proposal is the potential debt-to-equity conversion, which would allow Fortis Insurance to issue shares in exchange for part or all of the outstanding debt. The company believes the move could strengthen its financial position by reducing liabilities, improving capital adequacy, and enhancing its balance sheet.
The insurer is also seeking approval to waive pre-emptive rights where necessary, allowing any shares issued under the conversion arrangement to be allotted directly to creditors without first being offered to existing shareholders.
In addition, the board is requesting authority to make adjustments to the company’s share capital structure and undertake all related corporate actions required to execute the transaction.
Other resolutions before shareholders include granting directors the power to appoint professional advisers, execute relevant agreements, and ratify actions already taken in connection with the proposed restructuring.
If approved, the framework will provide the board with broad flexibility to implement a settlement package involving cash payments, equity issuance, or a combination of both, with the aim of resolving the long-standing debt obligation and strengthening the insurer’s financial stability.
Stakeholders are expected to closely monitor the outcome of the AGM, as the proposed restructuring forms a key component of Fortis Insurance’s broader strategy to optimise its capital structure and improve long-term financial sustainability.
