Afren Announce Update on discussion with bondholders
Afren plc (“Afren” or the “Company”) announces that in connection with the satisfaction of the conditions precedent for the provision of US$200 million in interim funding to be provided by certain holders of the Company’s 2016 Notes, 2019 Notes and 2020 Notes (the “Interim Funding”), the Company has reported to the committee of the bondholders preliminary concerns arising from work carried out by Willkie Farr & Gallagher (UK) LLP (“WFG”) regarding the hire of an individual within its operations in 2012 and the payment of certain travel and accommodation expenses connected to Afren’s activities.
As part of the Company’s implementation of improved internal compliance procedures and as a result of whistle-blower reports received by the Company’s management, the Company engaged WFG to assist it with its review of its compliance with such procedures. WFG has undertaken a substantial review of such matters, which is still ongoing but which is almost complete save for some follow-up work in relation to these two issues.
Having received WFG’s preliminary findings of such review, the Company has notified the proposed providers of the Interim Funding of such concerns (as required under the terms of such Interim Funding). In addition to this disclosure, the Company has notified the Serious Fraud Office of such matters. The Company has taken steps to halt its previous practices in relation to such expenses payments.
Egbert Imomoh, executive chairman, said “The Company takes its compliance with all laws extremely seriously and we are committed to ensuring that our business is not undermined by breaches of our internal policies or applicable legislation.”
Further announcements will be made as appropriate in due course.