London’s Afren is appointing Roc Oil's former Chief Executive Officer (CEO) Alan Linn as its new CEO to take the place of Osman Shahenshah, who was terminated for “gross misconduct” in October 2014.
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Linn. Image from Roc Oil. |
Linn is currently acting as a consultant to the board of directors. Afren said in a statement that it has agreed in principle with Linn for him to be appointed as the company’s new CEO and a director of the company with effect from completion of the interim funding, which is expected to occur imminently.
Linn is taking the reigns from acting CEO and senior independent director Toby Hayward. Linn was Roc Oil's CEO since 2011. He began his career at Roc as international operations and development manager in 2008. He served as chief operating officer from 2008-2010.
According to Afren’s interim funding update on 1 April, the company said it expects to officially announce the CEO appointment, in addition to group’s 2014 full year results, and super senior private placement notes.
Afren also announced it had acquired from lenders of the US$300 million Ebok debt facility, a further deferral of the US$50 million amortization payment that as originally due on 31 January 2015 until 30 April.
Both former CEO Shahenshah and COO Shahid Ullah were fired last year after an independent investigation into unauthorized payments showed the two were guilty of gross misconduct.
Willkie Farr & Gallagher (UK) LLP (WFG) conducted the investigation in July 2014 for Afren that determined that three transactions regarding Nigerian oil fields from 2012 and 2013 should have been disclosed to the market. In addition, the WFG investigation established that Shahenshah and Ullah used funds from the transactions to pay out large bonuses to themselves at $17.1 million each, and for nine other Afren employees.
Both Shahenshah and Ullah were suspended on 31 July, with termination following a little over three months later.
“The decision to terminate the employment and directorships of Shahenshah and Ullah for gross misconduct was based on evidence identified by WFG of breaches by Shahenshah and Ullah of their obligations to Afren as employees and directors, in particular the receipt of unauthorized payments from third parties. The board has instructed counsel to commence legal proceedings against Shahenshah and Ullah, if necessary, to recover sums in respect of such unauthorized payments,” Afren said in a statement on 13 October.
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