Board shake-up at distressed Afren
LAGOS, June 26, 2015 – Five of the six board members at Africa-focused oil and gas company Afren have resigned, as the company faces severe financial distress.
Executive chairman Egbert Imomoh stood down, along with four non-executive directors.
Alan Linn was appointed chief executive in April.
Shares in Afren have lost 98 percent of their value since the oil price slide began a year ago. The company was also forced to fire CEO Osman Shahenshah last year for gross misconduct, after it was revealed that he was taking secret payments.
The company saw a net loss of $1.7 billion in 2014 and a 42-percent drop in revenue year-on-year. It now anticipates a financial restructuring that would involved a refinancing of around $300 million of debt and a $348-million cash provision.
Nigeria-focused Seplat has been in talks for a takeover of Afren, but these were abandoned in February.