LNG developer Tellurian hires financial adviser

HOUSTON (Reuters) -Struggling liquefied (LNG) developer Tellurian (NYSE:) on Thursday said it has hired a financial adviser to assist in balance sheet management.

Tellurian ousted its chairman and co-founder Charif Souki, earlier this month weeks after auditors raised doubts about the company’s ability to cover future expenses.

Chairman Martin Houston in a letter to shareholders said the adviser will “assist with shaping commercial structures as well as balance sheet management.”

Earlier in the day the company said it swapped $37.9 million in notes from a 2025 bond for shares and an agreement that eliminated a Jan. 1 debt payment.

“I hope that these early steps will go some way to helping bolster confidence in the leadership of your company”, Houston wrote. The advisor “will provide valuable assistance and guidance in the coming weeks”, he added.

On Wednesday, a filing showed that another investor, Chatterjee Fund Management, had increased its stake in Tellurian to 7.3%, from 5.2% previously.

Tellurian shares fell 7.3% to about 88 cents following the disclosure, retracing an earlier gain. The company did not immediately respond to a request for comment.

Souki helped create the U.S. LNG export market in 1996 after seizing on discoveries of vast amounts of shale gas. He turned Cheniere Energy (NYSE:) from an LNG importer into a major exporter, but was unable to repeat the same success at Tellurian.