< "> edit this post http://www.investegate.co.uk/afren-plc-%28afr%29/rns/trading-statement-and-operations-update/201301210700069619
http://www.investegate.co.uk/afren-plc--afr-/rns/2012-full-year-results/201303250700107200A/

In an attempt to cut down the header page,i've transferred some of the older news to Page1 post No.3.

http://www.oil-price.net/index.php?lang=en
http://www.ft.com/home/uk

http://www.investegate.co.uk/Article.aspx?id=201111020700081674R
http://www.investegate.co.uk/Article.aspx?id=201111150700250723S
http://www.investegate.co.uk/Article.aspx?id=201112010705051251T
http://www.investegate.co.uk/Article.aspx?id=201201170700146472V
http://www.investegate.co.uk/Article.aspx?id=201201230701479690V
http://www.moneyam.com/action/news/showArticle?id=4323758
http://www.investegate.co.uk/Article.aspx?id=201204170700164488B
http://www.investegate.co.uk/Article.aspx?id=201205140700212304D
http://www.investegate.co.uk/Article.aspx?id=201205210700407032D
http://www.moneyam.com/action/news/showArticle?id=4430164
http://www.investegate.co.uk/afren-plc-%28afr%29/rns/significant-new-seychelles-3d-seismic-programme/201212120700052973T/
http://www.investegate.co.uk/afren-plc--afr-/rns/2013-half-yearly-results/201308230700063334M/
http://www.investegate.co.uk/afren-plc--afr-/rns/ogo-drilling-and-resources-update/201311190700083404T/
http://www.investegate.co.uk/afren-plc--afr-/rns/trading-statement-and-operations-update/201401280700096280Y/
http://www.investegate.co.uk/afren-plc--afr-/rns/interim-management-statement/201405200700135209H/
http://www.investegate.co.uk/afren-plc--afr-/rns/interim-management-statement/201410300700116483V/
http://www.moneyam.com/action/news/showArticle?id=4942625
http://www.moneyam.com/action/news/showArticle?id=4943375

I would guess 15p opening price on Monday am I right.

you might say that but i couldn't possibly comment

Cynic the debt is $1.2bn not pounds.

The Sunday Times

Afren lenders brace for fight as bid looms

25 January 2015

Afren is hamstrung by a huge debt pile and a plummeting oil price Afren is hamstrung by a huge debt pile and a plummeting oil price (PA?)

CREDITORS of the scandal-hit oil explorer Afren have drafted in a Wall Street heavyweight to fight their corner just days before an expected takeover bid from rival Seplat.

Shares in the London-listed company have collapsed by nearly 90% since July, when it uncovered a secret deal that would have handed $200m (£133m) to the then chief executive Osman Shahenshah and other top executives.

Shahenshah and three directors have been fired.

The scandal, combined with the precipitous fall in the oil price and Afren’s huge debt pile, has crippled the company.

Holders of $860m worth of bonds hired restructuring specialists at Blackstone on Friday, to advise them on their options.

Next Friday will be decisive for the company, whose revenues have collapsed due to the plummeting oil price.

It must make a $50m payment to its banks on Friday but has asked for an extension. The lenders have appointed PwC; Afren is relying on Morgan Stanley.

Friday is also the bid deadline that the stock market regulator has imposed on Seplat, which revealed last month that it was considering an offer.

Any deal is likely to wipe out a host of Afren’s creditors or require them to take a haircut on the value of their debts.

The company owes $1.2bn, equivalent to four times its stock market value.

Should the Seplat deal fail, Afren has lined up to two potential candidates to step in as the new chief executive: Jon Ferrier, a senior executive at the Danish shipping and energy giant Maersk; and Alan Linn of Roc Oil, an explorer listed in Sydney.

Shahenshah and the former operations chief Shahid Ullah paid back $20m to the company this month but did not admit wrongdoing.

The company owes £800m but as of the 30 September the NAV was $1.98bn and since then there has been a write down on their Kurdistan Assetts.

Job to guess anything here at all.....it's a takeover period which does help...but at what price ?...I thought at first it would be 100p or so....50 or 60p if we are lucky now ....or will Seplat or whatever they are called handover 300 million pounds for 51% of the company...that sort of thing...sort of Dragons Den arrangement....

sort of "got you by the balls situation", says seplat

I read that ST article today , Afren's debts are 4 x the value of the company ,

yes 4 x with the share price that has been driven down to 20 P ,if they drive it down to 10 P it will be 8 times the value .
You have to ask is 20 P a fair value of Afren ?

ask seplat!

http://www.ngrguardiannews.com/business/195182-avuru-why-private-refineries-fail

http://www.cnbc.com/id/102364314

Wrong thread

L2 indicates everyone dumping this morning

11m buys to 10m sells - down 2%

OPEC Secretary General Badri: "Oil prices have reached bottom, will rebound soon." - he's speaking at Chatham House.

Fundraising on the way.

They need cash urgently.

Afren plc ("Afren" or the "Company") provides an update regarding the review of its capital structure, liquidity and funding requirements announced on 20 January 2015.

In light of the significant dislocation in the industry and related financing markets resulting from the rapid decline in oil prices, the Board has been reviewing the funding and liquidity requirements of the business and seeking to address how it manages the overall leverage position of the Company.

The Company had a cash balance of approximately US$235 million at 31 December 2014. Liquidity available to the Company is significantly lower as a result of restricted and segregated cash balances in place to address operational requirements. The Company's near term cash flow is also impacted by capital expenditure incurred in late 2014 before operational changes had been implemented to adapt to the current lower oil price environment.

As previously announced, Afren has initiated negotiations with the lenders of the US$300m Ebok debt facility with a view to obtaining a deferral of the US$50m amortisation payment due on 31 January 2015.

In addition, the Board is considering whether 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.

These actions are being taken to protect the immediate liquidity position of the Company while it seeks funding to address its additional requirements.

The Company has been advised that an ad hoc committee of its largest bond holders has been formed. The Company has initiated discussions with the advisers to the committee regarding the immediate liquidity and funding needs of the business.

The Board has reviewed its business plan with the aim of minimising its funding requirements in the current oil price environment to focus on the development of the Company's core assets in Nigeria. Assuming the Company's current debt structure remains unchanged, there is an equity funding requirement which is likely to be significant and in excess of the Company's current market capitalisation. New funds will be required to meet interest and principal repayments, working capital and a reduced capital expenditure programme. The Company will be having discussions with its existing stakeholders and new third party investors regarding recapitalising the Company.

The Board is implementing efficiency and cost optimisation measures to improve its liquidity position. Alvarez & Marsal has been engaged to provide services as Chief Restructuring Officer.

Afren continues to be in discussions with SEPLAT Petroleum Development Company plc ("Seplat") regarding a possible combination with Afren.

There can be no certainty that an offer will be made or as to the terms of any offer.

Afren notes that in accordance with Rule 2.6(a) of the Code, by no later than 5.00 p.m. on 30 January 2015, Seplat must either announce a firm intention to make an offer for Afren under Rule 2.7 of the Code or announce that it does not intend to make an offer for Afren, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

Further announcements will be made in due course.

Its all over now.

What is?