Afren has announced an update regarding the review of its capital structure, liquidity and funding requirements saying it has obtained from the lenders of the US$300m Ebok debt facility a further deferral of the US$50m amortisation payment due on 31 January 2015 until 31 March 2015.
In addition, the Board says it is continuing 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.
The Company adds it is continuing constructive discussions with the advisers to, and members of, the ad hoc committee of its largest bond holders regarding the immediate liquidity and funding needs of the business.
The Company is also having discussions with its other stakeholders and new third party investors regarding recapitalising the Company.
Afren has operations in 11 countries across Africa and the Middle East including Kenya, Tanzania, Seychelles, Ethiopia and Madagascar in East Africa.