I am not trying to scare anyone. But in my experience it is an expensive disaster to keep holding onto a falling knife, capital is best deployed elsewhere in these situations.. I have been badly burned by holding certain shares and now realise it's best to flee from a share until you get some serious upward momentum in the graph. I know how you are feeling "I'm 90% down it can't get worse bla bla bla". Yes it can, it can go 100% down you can lose all your capital.
Personally.. if I was holding this I would watch carefully at the open tomorrow..and if it starts to move down after 20 minutes, sell it and rebuy cheaper at the close.
Afren has lined up to two potential candidates to step in as the new chief executive: Jon Ferrier, a senior executive at the Danish shipping and energy giant Maersk; and Alan Linn of Roc Oil, an explorer listed in Sydney.
Seplat deal looks done but Afren had theses CEO's ready to go anyway......not something you would do if the company was going to the wall!
You were not even invested the last time you were asked. How sad are you? spending time on a weekend posting negativity on a company you are not invested in. Don't forget to pack your school bag for tomorrow.
How many here bouggt into QPP a month ago when it was doom and gloom in the papers at 40p? I did and friday it hit 120p. Afren has huge assets and will come good. am in. Looking for 60-80p sooner or later.
Afren lenders brace for fight as bid looms 25 January 2015
Afren is hamstrung by a huge debt pile and a plummeting oil price Afren is hamstrung by a huge debt pile and a plummeting oil price (PA )
CREDITORS of the scandal-hit oil explorer Afren have drafted in a Wall Street heavyweight to fight their corner just days before an expected takeover bid from rival Seplat.
Shares in the London-listed company have collapsed by nearly 90% since July, when it uncovered a secret deal that would have handed $200m (£133m) to the then chief executive Osman Shahenshah and other top executives.
Shahenshah and three directors have been fired.
The scandal, combined with the precipitous fall in the oil price and Afren’s huge debt pile, has crippled the company.
Holders of $860m worth of bonds hired restructuring specialists at Blackstone on Friday, to advise them on their options.
Next Friday will be decisive for the company, whose revenues have collapsed due to the plummeting oil price.
It must make a $50m payment to its banks on Friday but has asked for an extension. The lenders have appointed PwC; Afren is relying on Morgan Stanley.
Friday is also the bid deadline that the stock market regulator has imposed on Seplat, which revealed last month that it was considering an offer.
Any deal is likely to wipe out a host of Afren’s creditors or require them to take a haircut on the value of their debts.
The company owes $1.2bn, equivalent to four times its stock market value.
Should the Seplat deal fail, Afren has lined up to two potential candidates to step in as the new chief executive: Jon Ferrier, a senior executive at the Danish shipping and energy giant Maersk; and Alan Linn of Roc Oil, an explorer listed in Sydney.
Shahenshah and the former operations chief Shahid Ullah paid back $20m to the company this month but did not admit wrongdoing.
Considering your new deal with Afren, what are the bigger plans ahead?
The preliminary discussion with AFREN and the refinancing package are all part of our growth through acquisition and interest in the gas business. To be able to make the huge investment in gas and associated facilities, and the acquisitions that are complementary to our business, we need a petty minimum war-chest. What we have done is to then leverage value in terms of production and sales and our balance sheet to tap the debt market to access debts that can enable us do business better.
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