Why tomorrow will be crucial for embattled Afren
Tomorrow could be the day of reckoning for beleaguered oil and gas company Afren, whose shares crashed 72 per cent just two days.
Nigerian rival Seplat has until tomorrow to make an offer, although it could ask for another extension, as it did … .
throw it a lifeline …
"We see low likelihood of an offer on Friday," broker Oriel said in a note. "If anything, we could see another extension, in light or the new situation, or no offer at all."
CITY ANALYSTS UNCONVIENCED.
… this leaves analysts at the mercy of their bondhodlers …
This is also the day it is due to repay $50million (£33million). It is now trying to negotiate a deferral of this payment and is in talks with bondholders and lenders. … no it's the 31st.
London-listed Afren is in negotiations with lenders to defer a $50 million payment due on Jan. 31 and may delay a $15 million coupon due on its $253 million of 11.5 percent bonds on Feb. 1.
Ratings agency Fitch cut Afren's long-term rating to 'C' from 'B-', a move which it said was "reflecting our view that default is imminent."