Shares in Tullow Oil slumped to a record low, briefly triggering a trading halt, after the company said it was exploring options to refinance its looming debt maturities.
The stock fell as much as 35 percent to 5.55 pence its weakest level since the explorer listed in 1989 amid fears that any restructuring could hit shareholder value. Tullow’s bonds due next May also dropped, sliding 7 cents to about 79 cents on the dollar, according to Bloomberg data.
In a trading update, the company said uncertainty around its performance and market conditions had prompted it to pursue “alternative options with certain of its creditors, including an amendment and extend exercise and other forms of liability management transactions.” It also revised its year-end net debt forecast up to US$1.2 billion from US$1.1 billion.
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