Afren Pins Hope on Gen. TY Danjuma for Survival

afren.jpgNigeria - Alan Linn, Afren's chief executive last month flew to Nigeria to secure the support of the wife of a retired general for the beleaguered oil explorer’s “do or die” rights issue, Sunday Times reports.

Afren was worth £1.2bn last summer before the collapse in the oil price and a scandal over undisclosed pay deals for its top executives sent the company into crisis. It is now worth £18m.

In the midst of the meltdown South Atlantic Petroleum (SAPetro), a Nigerian rival controlled by General Theophilus Danjuma bought a 7% stake, stoking expectations he might make a move for the whole company. According to Forbes, he's worth $700m.

It is believed that Alan Linn Afren's new chief executive flew to Nigeria last month to meet Daisy Danjuma, vice-chairman of SAPetro and a sitting senator.

The talks ended positively but sources say Daisy didn't offer a firm commitment.

Afren on Friday said it planned to forgive some loans, issue new debt and raise 49m Pounds in new shares. The deal will leave current investors with no more than 15% of the recapitalised company.

Danjuma reportedly lost 70m pounds on the Afren bet. 

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