Afren: Default on bond repayment


Issue 296 - 12 Mar 2015 | 1 minute read

Beleaguered explorer Afren has opted to default on one of its bond repayments to preserve cash before a planned restructuring. The company announced on 4 March that, following the expiry of a 30-day grace period, its board had decided not to repay $15m in interest due on 1 February on its 2016 notes. The company said it had received assurances from an ad hoc committee of its bondholders that they would not enforce immediate repayment. A scandal over unauthorised payments to management uncovered last year, combined with the falling oil price, has seen the share price collapse from a high of 166p in October 2013 to a low of 4p in January

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