Afren placed in administration after refinancing talks fail

Embattled African oil company Afren, which earlier in July suspended its shares amid uncertainty over its financial position, has been placed into administration as it failed to agree a refinancing with its Pimco-led group of lenders.

Despite three months being given $200m in emergency funding, Afren has been deep in talks with its lending banks, bondholders and other partners after production plunged at its Ebok oil field.

Read more: Afren suspends shares on poor production news

After losing finance director Darra Comyn, hiring a new chief executive in Alan Linn, and further reshuffling the board, directors said on Friday that they now believe that "all the possible routes" had been explored during these talks but they have "failed to deliver support" for a new refinancing and restructuring deal to enable the company to pay its debts.

As a result, the board has decided to call in administrators from AlixPartner.

Read more: Afren notifies UK's SFO over expense payment concerns

Shares in Afren remain suspended.