TROUBLED oil firm Afren received a boost from the market yesterday, as shares shot up by 15.11 per cent after the firm was granted another extension on its debt payments.
The company updated investors yesterday on the ongoing review of its capital structure, liquidity and funding requirements and revealed that it had gained a further deferral of the $50m (£33m) amortisation payment, originally due on 31 January, to 31 March.
It also continues to utilise a 30 day grace period under its 2016 bonds with regards to a $15m interest payment which was due on 1 February.
Afren said it is “continuing constructive discussions” with its largest bond holders and their advisers regarding the firm’s immediate liquidity and funding needs. It is also having discussions with its other stakeholders and new third party investors regarding recapitalising the company.
Analysts at Numis said yesterday: “Clearly, the company remains under significant financial stress.”