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Funmilayo Dodondawa, Lagos
Afren Plc, a major exploration and producing company, has obtained $50 million amortization payment from lenders of its $300 million facility.
The company stated in a statement that Afren has obtained from the lenders of the $300m Ebok debt facility a further deferral of the US$50m amortization payment due on 31 January 2015 until 31 March 2015.
“In addition, the Board is to utilize a 30 day grace period under its 2016 bonds with respect to $15m of interest due on 1 February 2015 while the review of the capital structure and funding alternatives is completed,” it stated.
It disclosed that the Company 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 recapitalizing the Company,” it noted.
A few days ago, the company disclosed that it has discontinued negotiations with Seplat petroleum Development Company on the possible coming together of the two oil outfits.
It maintained that the Board has not received any proposal from Seplat that it believes is capable of being implemented on terms satisfactory to all relevant stakeholders in the Company, including the indicated value being significantly below the aggregate value of the debt of the Company.
“Accordingly, the Board has concluded that continuing discussions with Seplat is not in the best interests of the Company’s stakeholders and will not agree to Seplat’s request for an extension of the Deadline. This announcement is made without Seplat’s consent,” it disclosed.
Afren maintained that the Company 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.
“The Company is also having discussions with its existing stakeholders and new third party investors regarding recapitalizing the Company,” it noted.
Afren plc is an international independent exploration and production (E&P) company with a Premium Listing on the London Stock Exchange and a constituent of the FTSE 250 Index.
Afren is a dynamic, entrepreneurial organization with a portfolio of world-class assets located in several of the world’s most prolific and fast-emerging hydrocarbon basins in Africa and the Middle East.
“Our activities span the full-cycle E&P value chain of exploration, appraisal, development through to production,” it stated.
It maintained that its success depends on our ability to deliver long-term value for all our stakeholders through a clear and consistent strategy, which recognizes that our responsibilities go beyond our operations.
“To leverage our track record of operational delivery and effective portfolio and financial management our business has been strategically positioned into three core business units, Nigeria and other West Africa, Afren East Africa Exploration and the Kurdistan region of Iraq,” it added.
