Finance & Investing | Top Story | Default | Capital Markets
E&P Defaults on Multi-Million Loan Payment
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Afren plc reported an update regarding the review of its capital structure, liquidity and funding requirements.
In light of the Company’s current liquidity position and in order to preserve cash while the review of the Company’s capital structure and funding alternatives is completed, the Board has decided, at the expiration of the 30 day grace period, not to pay US$15m of interest which was due on 1 February 2015 under its 2016 Notes. While such non-payment will result in a default under the 2016 Notes, this will not result in an immediate obligation to repay such 2016 Notes or any cross-default under its 2019 Notes or 2020 Notes or its other debt facilities.
The Company has received assurances from the ad hoc committee (which members hold in aggregate approximately 55% of the principal…
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