Tullow Oil Faces Refinancing Risks and Potential Equity Dilution

2 months ago

Louise Moon

"So, Tallow Oil, a new record low. What have analysts been saying about this company? So they raised their net debt debt forecast this morning and saying that they're holding talks with creditors over options for the business. So Talo essentially kind of boomed in the late 2000s. They took on a lot of major major discoveries in Africa, but with that they took on a lot of debts to develop those. They've been struggling in recent years. sold off some of those African assets, but this new detail is that they're progressing with creditors on other options. So, analysts are saying that it increases the likelihood of refinancing. It could result in significant equity dilution. So, shares plunged to a record low and actually briefly halted trading this morning on the back of that news."

Tullow Oil is under significant pressure as it faces a record low in share price amid rising net debt forecasts and creditor talks over refinancing options. The commentary points to past aggressive expansion funded by debt and warns of potential equity dilution if refinancing talks lead to unfavorable terms.

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