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OIL & GAS

Afren Will Not Pay $15 Million Interest On Debt

Afren Plc has said it will not pay the $15 million interest due on February 1 under its 2016 notes in order to preserve cash until a review of its capital structure is completed.

The company said this would result in a default under the 2016 notes, but that it would not have an immediate obligation to repay the notes.

Shares of Afren fell as much as 50 percent in early trading on the London Stock Exchange.

Earlier this week, there were speculations that the oil producers had new bidders which included China’s Fosun International Ltd.
who reportedly are backing a $500 million (325 million pound) bid led by Afren co-founder Bert Cooper.

Afren’s share price jumped as much as 40% to 12 pence (N37.44) in early trading on the London Stock Exchange on Monday.

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