Tullow Oil, a London-listed oil explorer, faces defaulting on a $1.3bn bond repayment with only $200m in cash. S&P has downgraded Tullow’s credit rating to CCC, warning of a cash crunch and increased borrowing costs. The company is spending $100m more than it makes, heightening refinancing risks and liquidity concerns.

Once a FTSE 100 member worth £14bn, Tullow’s struggles have reduced its market value to £155m. Entrepreneur Aidan Heavey built the company into a global business with operations in 20 countries. Tullow is now selling assets in Kenya and Gabon to repay debts, focusing on operations in Ghana.

Tullow Oil, named after a town in Ireland, faces financial turmoil as it scrambles to refinance its capital structure. The company’s asset sales in Kenya and Gabon aim to repay creditors, while Tullow evaluates various options to secure its financial future.

Read more at Yahoo Finance: London oil explorer at risk of debt default