Afren shares crash 14.14pc after investors continue with sell off
EMBATTLED oil producer Afren continued to bleed yesterday as investors sold off shares for the third session running.
Shares in the Africa-focused group, which recently slipped out of the FTSE 250, fell 14.14 per cent to 3.21p yesterday. This comes after the company’s shares closed down by 28 per cent on Friday, and by 24.3 per cent on Monday.
Investors were left reeling after Afren said its recapitalisation plan would dilute their stake to just 11 per cent. They have been urged to approve the agreement, which will see Afren receive $300m (£203m) from bondholders and lenders, or else risk losing the entire value of their investment.
Shares in Afren were already feeling the heat earlier this month after it admitted to defaulting on $15m of interest payments that had been due on 1 February.
This tops off what has been a particularly difficult year for Afren, with its share price crumbling by 90 per cent. It has been rocked by boardroom drama, tumbling global oil prices, abandoned projects and a cash flow crisis.