Hurricane Energy shares tank on restructuring plan as production falls
Fri, 30th Apr 2021 10:58
(Alliance News) - Hurricane Energy PLC on Friday proposed a financial restructuring plan following talks with its bondholders as its Lancaster Field fails to deliver.
Hurricane shares sunk 48% at 1.20 pence each. The stock is down 52% year-to-date.
The UK-focused oil & gas firm said it has entered into a lock-up agreement with an "ad hoc group of bondholders", who own 69% of the company's USD230 million convertible bonds due July 2022.
Hurricane has been in talks with its bondholders since March.
The agreement will see the ad hoc committee agreeing to support a transaction that will "materially deleverage the company's balance sheet, enhance its liquidity position and extend its debt maturity profile". This will give Hurricane the financial flexibility to pursue a revised business strategy.