Afren Shares Rally on Deferred Payment

By John Lee.

Shares in Afren plc were trading 20 percent higher on Monday after the company announced that it has negotiated a deferral of the US$50m amortisation payment due on 31 January 2015 until 31 March 2015.

The agreement was made with the lenders of the US$300m Ebok debt facility.

In addition, the Board is continuing to utilise a 30 day grace period under its 2016 bonds with respect to US$15m of interest due on 1 February 2015 while the review of the capital structure and funding alternatives is completed.

The company said it is "continuing constructive discussions with the advisers to, and members of, the ad hoc committee of its largest bond holders regarding the immediate liquidity and funding needs of the business. The Company is also having discussions with its other stakeholders and new third party investors regarding recapitalising the Company".

Further announcements will be made in due course.

(Sources: Afren, Yahoo!)

(Bonds image via Shutterstock)


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