Afren gets a months grace for $65 mln in debt payments

Oil producer Afren Plc, struggling with looming debt payments, said lenders had agreed to defer a $50 million amortisation payment by a month and that it would delay the payment of a $15 million bond coupon by a month.

Afren, which had about $1.15 billion in gross debt as of September last year, said on Friday that lenders of a $300 million facility had agreed to defer the payment until Feb. 27 from Jan. 31.

The London-listed company, whose main producing assets are in Nigeria, said it had decided to utilise a 30-day grace period under its 2016 bonds with respect to an interest payment due Feb. 1.

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The company, which had previously said it was considering delaying both debt payments, said it was in talks with its largest bondholder regarding funding needs.

Afren said it was also in talks with stakeholders and new third party investors regarding funding requirements.

The announcement comes hours after Afren said the UK Takeover Panel had extended the deadline for Nigeria’s Seplat Petroleum Development Co to make a firm offer for the company or walk away.

Afren’s shares closed up 26 percent at 5.3 pence on Friday on the London Stock Exchange