Trouble oil producer Afren continues its volatile run.
After slumping last week on worries about its finances, mitigated by hopes that Nigeria’s Seplat would agree a deal having obtained an extension to its bid deadline, Afren’s shares are currently up 51% to 8.03p.
This follows news released after the market closed on Friday that lenders had agreed to defer a $50m payment due on 31 January by a month. It will also utilise a 30 day grace period in its 2016 bond agreement to delay a $15m payment, due on 1 February, by a month.
The company - which has around $1.15bn of gross debt - is in talks with bondholders, stakeholders and other parties about its funding needs, which would exceed the value of its market capitalisation.
Meanwhile, after Friday’s deadline was extended, Seplat has until February 13 to decided whether or not to make a bid.
