UK firm Afren has secured $225 million in new funding after defaulting on $15 million in interest payments due on its 2016 bonds.

The company said Thursday it will receive $200 million in net interim funding from bondholders with an additional $55 million to be provided at closing in July.

The recapitalization funding can also be increased to up to $305 million, Afren added.

“The recapitalization and investment demonstrates the ongoing commitment to invest in Nigeria. These steps set ‘New Afren’ on a decisive path to address the operational and governance issues it has faced and ensure it can successfully reposition itself focused on its core Nigerian producing assets,”Afren said.

The company also announced that Alan Linn has been appointed CEO and will replace current interim CEO interim Toby Hayward.

“There is a lot to do. However, the core assets and the quality of people and partners I’ve met give me the confidence to say that Afren has an attractive future and I am pleased to have the opportunity to contribute to this future success,” Linn said.

In January Afren warned that it was facing a massive cash crunch as it tries to restructure its finances and ink a merger deal with Nigeria’s Seplat Petroleum Development Company (Seplat).

The company has not disclosed if it is still in merger talks with Seplat.

Afren booked $946 million in 2014 revenues, a 42 percent drop from 2013, and took a $1.65 billion after tax loss for the year.


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