(Alliance News) - IOG PLC on Monday said it is discussing a potential further waiver on interest payments with its bondholders, and risks being put into administration if talks fail.
The stock was down 25% at 2.15 pence in London on Monday about midday. Over the last 12 months, the shares are down 94%.
In late June, the London-based, UK-focused gas developer and producer agreed a waiver to postpone the interest payment deadline under an EUR100 million senior secured bond from June 20 to July 31.
Following "extensive discussions with bondholders and their advisors," IOG said it is now "at an advanced stage" of agreeing another waiver, which it expects to sign "as soon as practicable."
IOG said a further waiver would provide an additional period of stability and thereby help the company address its balance sheet "challenges". Without it, the company warned that it may default on payments and potentially be put into administration, although its directors do not believe this is likely.
"We continue to have constructive discussions with bondholders and remain focused on delivering an outcome in the best interests of all stakeholders in IOG," said Chief Executive Officer Rupert Newall.
IOG also reported "relatively weak" gas prices so far during the summer, against a backdrop of high market volatility. Realised prices in July averaged between 70 and 75p per therm.
By Emma Curzon, Alliance News reporter
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