Afren (AFR)


Afren adjourns refinancing meetings

Afren has adjourned general and special meetings to assess the impact of near-term output being materially lower than previous assumptions.

A general meeting was schedules for Friday (24 July) and a scheme meeting was due to be held on 29 July.

But the company announced on 15 July that during an ongoing review of its business plan it became clear that the expected level of near-term production was likely to be materially lower as compared to assumptions announced alongside the proposed restructuring on 13 March.

The company says it is currently in the process of clarifying the impact of the revised assumptions on its business plan.

This process has brought to light the requirement for further significant funding and the need to reflect this new information in discussions regarding the proposed restructuring plan.

Afren says the postponement of the general and scheme meeting will allow it to finalise the review and engage with the relevant stakeholders to discuss the implications of the revised assumptions on the restructuring.

Given the material uncertainty of the results of the review and the discussion regarding additional funding, Afren is unable to assess accurately its financial position and inform the market accordingly. Afren's shares remain suspended.