Afren plc has provided an update regarding the review of its capital structure, liquidity and funding requirements as announced on 27th January as the business seeks to address how it manages the overall leverage position of the Company.
Further to its previous announcements, Afren has obtained from the lenders of the US$300m Ebok debt facility a deferral of the US$50m amortisation payment due on 31 January 2015 until 27 February 2015.
In addition, the Board has decided to utilize 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.
Afren adds that it is continuing discussions with the advisers to the ad hoc committee of its largest bond holders regarding the immediate liquidity and funding needs of the business.
Further the Company is also having discussions with its existing stakeholders and new third party investors regarding recapitalizing the Company.
The Company had a cash balance of approximately US$235 million at 31 December 2014 with the liquidity available to the Company being significantly lower as a result of restricted and segregated cash balances in place to address operational requirements.
Afren has operations in 11 countries across Africa and the Middle East including Kenya, Tanzania, Seychelles, Ethiopia and Madagascar in East Africa.[twitter-follow screen_name=’oilnewskenya’]