4th Mar 2015 07:54
LONDON (Alliance News) - Afren PLC on Wednesday said it has decided not to pay the interest owed on its 2016 bonds and will default on the notes.
The oil explorer, which is to be demoted from the FTSE 250 following a sharp decline in its share price since the middle of 2014, said it has decided it will not pay the USD15 million interest due on February 1 on its 2016 notes.
It said it has received assurance from its ad hoc committee of bondholders that they have no intention to take enforcement action against the company, meaning Afren will have no obligation to repay the 2016 notes.
The group added its remains in talks with the lenders on its USD300 million Ebok facility, its bondholders and potential third-party investors about securing its financial future and on recapitalising the business.
By Sam Unsted; [email protected]; @SamUAtAlliance
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