< "> 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

Mr Cooper said his plan was to bring in “substantial” new capital, in the form of new equity. This would benefit all parties. Although shareholders would initially be diluted “they would be offered an opportunity to co-invest in a new play they can grow with”
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Rather like i said dilution because of a placing ,there may still be something to play for .
Now stop haunting this thread cynic and get back over the road .

I think it's GF in disguise jimmy.,.

No it's not GF Balerboy ,iv'e never known him to want to constantly gloat over anybodies losses .

Only Chris and DB4 losses [ FLYB ]

It also says that shareholders would have to wait maybe years when there is a higher oil price for them to get back anything near to those who paid 170, 145, 136 ,96, ............70p

Maybe worth buying the new shares when the dust as settled

aldwickk , i'm not thinking in those figures ,i bought on the way down ,i'd be happy to rescue half my original stake.
However it's my fault i for once didn't stop out .

Yes Jimmy, its a mistake we all make at one time or other

jimmy - i shall be marginally upset if it is me you are accusing of gloating, for it is singularly unwarranted
i never ever do such, for i have taken a pasting far too often through stupidity and greed

Massive dilution on the way.

brace for impact - incoming!!

going down

gla

London, 13 March 2015
Afren plc ("Afren", the "Company" or the "Group"), (LSE: AFR) has reached an agreement in principle to address its short and longer-term funding needs and recapitalise its capital structure. An agreement has been entered into by Afren together with certain noteholders under its 2016 Notes, 2019 Notes and 2020 Notes and a majority of the lenders under its existing US$300 million Ebok credit facility, regarding the key terms of a proposed interim funding and recapitalisation of the Group, which is intended to result in the provision of US$300 million of net total funding before the end of June 2015.

Afren also issues the following trading statement and operations update, in advance of the Group's 2014 full year results which are scheduled for release by the end of March 2015. Information contained within this release is un-audited and is subject to further review.

Update on capital structure review: Interim Funding and Recapitalisation

In connection with a review of its capital structure and alternatives to address its immediate and longer term funding issues, Afren has considered a range of proposals and alternatives from both existing stakeholders and third parties. Following such review, the Company has concluded that a transaction with its current creditors offers the best alternative that is capable of being implemented.

Afren has reached a conditional agreement with noteholders representing approximately 42% of the outstanding principal amount due under its 2016 Notes, 2019 Notes and 2020 Notes (the "Ad Hoc Committee") for the provision of US$200 million in net interim funding in the form of a super senior private placement notes ("PPN"), which are expected to be issued by the end of March 2015 (the "Interim Funding"). This Interim Funding will provide initial liquidity to the Group and provide time to implement the required steps towards the completion of the recapitalisation transaction that has been agreed in principle between the Ad Hoc Committee and a majority of its lenders under its existing US$300 million Ebok credit facility (the "Ebok Facility"). The PPN have been pre-placed with certain members of the Ad Hoc Committee (the "Participating Noteholders").

The Ad Hoc Committee, together with lenders representing more than 67% by value of the lenders under the Ebok Facility (the "Consenting Ebok Lenders") have also agreed in principle to implement a financial and capital restructuring (the "Recapitalisation") to secure the Group's future.
The key elements to the Recapitalisation include:
· Refinancing of the PPN through the issuance of US$321 million new high yield notes (the "New Senior Notes") which will provide an additional US$100 million in net cash proceeds to the Group

· Debt-for-equity swap: 25% of the 2016 Notes, 2019 Notes and 2020 Notes will be converted into equity with the remaining existing Notes being reinstated and extended to 2019 and 2020 at an annual coupon of 9.1%

· Extension of the Ebok Facility until 2019, alongside a re-profiling of the amortisation schedule under such facility

· Issue of new shares to the existing noteholders who subscribe for the PPN and the New Senior Notes

· Up to US$75 million equity offering to all shareholders to provide the opportunity to participate in the Recapitalisation and provide additional liquidity to the Group

It is anticipated that the Recapitalisation will be completed by the end of June 2015.

Mar 13: Westhouse: Sell - TP: 2p

Can't believe I sold at 151p the last time I held these.

lucky and sensible chap :-)

i really am staggered (though i should not be) at the amount of grief i have been given on this thread in recent weeks for even suggesting that AFR would end in tears for PIs

What are you on about cynic ,it had already ended in tears , once the sp was down past 10p the damage was done ...
You were not telling anyone anything they didn't already know . You just kept saying it over and over again and it became tiresome .

jimmy - there were many on here who kept saying that it would rise like a veritable phoenix ...... you will note than from 10p it has now more than halved again

i would agree that if you hadn't already baled out by the time sp dropped to 10p you were pretty much stuck, but anyone buying at that level, and there looks to have been plenty, was surely certifiable

Summary from Canaccord:
(This should make you happy Jimmy!)
"A ‘no’ would effectively result in anticipated zero value for current shareholders (market cap even now is £72m). A ‘yes’ vote would see considerable dilution ultimately resulting in current shareholders owning only 11% of the new projected equity. As a first step the debt for equity swap will see current shareholders own only 20% of the projected $288m equity value, ie $58m or £38m. In round terms that will see a halving of the current equity holders market valuation. We see this complex transaction as the only solution for Afren and unsurprisingly equity shareholders are likely to be the losers, but it could be worse in our view. We believe the end company should survive (on a ‘yes’ vote) and has the potential to flourish with a still strong underlying Nigerian asset base."

Summary note from Stifel:
"Our initial look suggests that the proposal is significantly dilutive at the current share price. Assuming that in the current environment the assets are worth $1bn, the additional c$400m of cash would raise the value to $1.4bn. However, c$1.25bn of this still appears to be debt, leaving only c$150m equity value, of which the current shareholders would only get 11% or c$16.5m, significantly lower than the current market cap $100m. Even if we were to use our long-term oil price assumption of $80/bbl and value the assets at c$1.5bn (+c$400m of cash injection), the 11% share would imply a value to the existing shareholders of c$70m, or about 30% lower than current market cap. We would have to talk to the company for some clarification, this is our initial look on the matter."

Thanks for that HARRY .. Iv'e been happier :(

11% share would imply a value to the existing shareholders of c$70m

if that is a fair summation, then what value does put on the shares?

==============

no i do not remotely follow this guy, but TW writes inter alia .....

You will note that there is a capital reorganisation proposed to change the nominal price of the shares from 1p. That is telling you the equity issue will be at well sub 1p and that is exactly where the shares are heading.

I thought the "We believe the end company should survive (on a ‘yes’ vote) and has the potential to flourish with a still strong underlying Nigerian asset base" might give you hope Jimmy! Better than receivership.....administration......insolvency........bankruptcy............ ;o)

Yes HARRY it is but i can't see these being worth 30 pence in the near future ,they will be on the floor . However your right they are in a way still alive .