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

Blown out the water cynic....... ;))

moi? .... why? .... i sure don't hold

Then why spend so much time here

because i choose to and it's a company which i have followed for a number of years .... and really and truly, what biz is it of yours?

Mr C, I think there are a great number of AFR investors out there who are sitting on stock at a much higher price, so potential losses are a bit of a sensitive issue.

hard cheese
i've made plenty of losses in my time, and i suspect i got walloped here a few months back

i post it as i see it and it happens that i think this company is near enough doomed, and not without reason
many others think (i say kid themselves) that i'm completely wrong and that AFR will make a strong recovery

probably a few weeks at most will determine who is right

you asked harry to explain 3p which he did....... very confidently...... to your surprise lol.,.

no not all ... i genuinely wanted to know

1-0 I think ;))

know nothing, but i like to ask he said

from today's rns: 'the issue of new equity which will substantially dilute the interests of the Company's current shareholders.'

Further Update on the Review of Afren's Capital Structure

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

In light of the Company's current liquidity position and in order to preserve cash while the review of the Company's capital structure and funding alternatives is completed, the Board has decided, at the expiration of the 30 day grace period, not to pay US$15m of interest which was due on 1 February 2015 under its 2016 Notes. While such non-payment will result in a default under the 2016 Notes, this will not result in an immediate obligation to repay such 2016 Notes or any cross-default under its 2019 Notes or 2020 Notes or its other debt facilities.

The Company has received assurances from the ad hoc committee (which members hold in aggregate approximately 55% of the principal face amount of the 2016 Notes and 44% of the total principal face amount of the 2016 Notes, 2019 Notes and 2020 Notes) that the committee has no current intention to take enforcement action with respect to the 2016 Notes held by its members as a result of the failure to make payment of interest due under the 2016 Notes, in the hope and expectation that agreement can shortly be reached with the Company and its key stakeholders on the terms of a consensual restructuring that would preserve the Group and its business as a going concern for the benefit of all stakeholders.

The Company is continuing constructive discussions with the advisers to, and members of, the ad hoc committee of its largest bond holders, the coordinating committee of the lenders under its US$300m Ebok debt facility and its other lenders regarding the immediate liquidity and funding needs of the business. It is expected that any agreement with the Company's bond holders and debt providers regarding the provision of interim and longer term funding and a broader consensual restructuring is likely to result in economic terms associated with the new funding and/or the issue of new equity which will substantially dilute the interests of the Company's current shareholders.

While the Company is also having discussions with its other stakeholders and third party investors regarding interim funding and recapitalising the Company, the Board believes that an agreement between the Company's creditors presents the most likely solution to the immediate issues facing the business. There can be no certainty that an agreement will be reached.

Further announcements will be made in due course.

The contents of this announcement will be available at www.afren.com. The content of the aforementioned website is not incorporated into and does not form part of this announcement.

it is likely that there will now be significant bear closing to crystalise profits

i am 99.9% sure that this will be just a brief respite before the company (for PIs) finally hits the rocks and the wise will cut their their losses accordingly

The issue of new equity ... well at least that's not bust ,lets see what a placing brings .

jimmy - you're bonkers! ...... which bit did you not read?

restructuring is likely to result in economic terms associated with the new funding and/or the issue of new equity which will substantially dilute the interests of the Company's current shareholders.

jimmy's correct. Dilute does not mean bust. I agree that the outlook is not good for holders, but until the receivers are called in, there is still some value left.

Exactly HARRY .
I don't think cynic gets it .
Cash in now and take what's left or hang on and see what happens , as i bought on the way down i may get half my original share price back some day ,long wait i admit but iv'e kind of written this off so if it survives in any shape or form it's a bonus .

Barclays comment:
"Our view: The decision not to make the $15m coupon payment underlines the critical status of Afren’s challenging liquidity position. We would expect the company and its creditors to continue working towards a restructuring solution. We reiterate our Underweight rating on the stock.

Default of bond interest payment
Afren has elected not to pay the $15m coupon due on its 2016 Notes, following expiry of the 30-day grace period. This is a default under the 2016 Notes but Afren has received assurances from its ad hoc committee of bondholders (who hold 44% of the total principal bond debt outstanding) that it has no intention to take enforcement action at this stage.

Afren has already secured a deferral of the $50m amortization payment due on the $300m Ebok RBL facility until 31 March. It has further bond coupon payments due of ~$13m in early April (the 2019 Notes) and ~$12m in early June (the 2020 Notes). We estimate outstanding debt at the end of 2014 was $1.2bn, of which ~$865m was bond debt.

Capital restructuring
According to this morning's press release, bondholder willingness to hold off enforcement action following the default is in the expectation that agreement can be reached on a “consensual restructuring” that enables the company to remain a going concern. Management views an agreement with its creditors as the most likely solution to the immediate funding and liquidity issues facing the business, and also states that the economic terms of any new funding would likely substantially dilute current the interests of current shareholders."

dilute may not mean bust, but it's likely to mean to mean less than FA
i'ld be quite surprised if the dilution resulted in "fair price" being more than 2/3p and possibly a lot less

and if the oil price starts to climb albeit in a few months time what then??? maybe better for afren.,.