20th Jan 2015 18:38
LONDON (Alliance News) - Afren PLC Tuesday confirmed that it is discussions with its lenders regarding amendments to its existing facilities and is seeking a deferral of a USD50 million amortisation payment that is due at the end of January.
In response to press speculation about a possible financial restructuring, Afren said it has has been reviewing its capital structure, liquidity and funding requirements with its advisors. Additionally, it is reviewing its cost base and capital expenditure plans for 2015 "given the rapid decline in the oil price."
Afren said it continues discussions with SEPLAT Petroleum Development Company PLC about a possible combination, but noted that there can be no certainty any offer will be made, or the terms of any offer.
Under UK takeover rules Seplat has until January 30 to either announce a firm intention to make an offer for Afren or walk away.
Shares In Afren closed down 5.6% at 26.10 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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