Afren signs agreement for interim funding

Afren will start legal proceedings against founder and Chief Executive Osman Shahenshah, Chief Operating Officer Shahid Ullah and associate directors Iain Wright and Galib Virani to recover money related to the payments

Oil producer Afren Plc said it has reached in-principle agreement to address short and longer-term funding needs and recapitalise its capital structure.

The company said it had entered into an agreement with certain noteholders and a majority of the lenders under its existing $300 million Ebok credit facility, which would result in the provision of $300 million of net total funding before the end of June 2015.

Afren, whose assets are primarily in Nigeria, earlier this month said it had defaulted on its 2016 bonds, missing an interest payment.

Afren Plc’s shares fall as much as 26 pct & top pct loser on FTSE 250, after the indebted oil producer says existing shareholders to hold only about 11 percent stake post recapitalisation