Afren plc provides an update regarding the review of its liquidity and funding requirements

Afren plc provides an update regarding the review of its liquidity and funding requirements

Further to its previous announcements, the Board has decided to utilise a 30 day grace period under its 2020 bonds with respect to approximately US$11.9 million of interest due on 9 June 2015 pending the completion of the recapitalisation process.

The Board anticipates that, given the terms of the consensual restructuring that has been agreed with its principal creditors, it will not pay such interest at the expiry of this grace period. While such non-payment will result in a default under the 2020 Notes, this will not result in an immediate obligation to repay such 2020 Notes or any cross-default under its 2016 Notes or 2019 Notes or its other debt facilities.

The Company has received assurances from the ad hoc committee (which members hold in aggregate approximately 39% of the principal face amount of the 2020 Notes and approximately 33% 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 2020 Notes held by its members as a result of any failure to make payment of interest due under the 2020 Notes.

The Company expects to be able to provide further information regarding the terms of the Recapitalisation, including a circular to shareholders regarding the terms of the proposed open offer of new shares, within the next week.

Source: Afren plc

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