Shares of troubled West of Shetland oil and gas explorer Hurricane Energy plc fell another 50% on Friday after it proposed a complex debt restructuring that includes a debt-to-equity swap as it fights for survival amid the significant downgrading of its flagship Lancaster field.

Reuters reported that the plan effectively gives its creditors control of the company and the announcement drove its share price down to a record low around 1p.

Hurricane has entered a lock-up agreement with creditors holding 69% of its $230 million bonds due July 2022 which would see $50 million of debt converted to shares “comprising 95% of the fully diluted pro forma equity of the company immediately following the restructuring,” it said.

The remaining debt’s maturity would be extended to December 2024.

Hurricane Energy CEO Antony Maris said: “This has been a difficult period for Hurricane and its stakeholders.

“Following the significant downgrade to Lancaster Field reserves and future production profiles, coupled with oil price volatility, current financial projections show we will not be in a position to repay our convertible bonds at maturity from Lancaster Field cash flows.

“Significant time and effort has been focused on all available technical, financial and commercial options and, after careful consideration, we believe that implementation of the proposed restructuring will deliver the best possible outcome.

“We acknowledge that this proposed course of action entails significant dilution for our existing shareholders, but it marks an important and necessary step in the company’s efforts to secure a viable capital structure.”