Tellurian Enlists Financial Advisor Amidst Leadership Shake-up and Financial Concerns

The move reflects Tellurian's commitment to navigating its financial difficulties and charting a more stable course forward.

Struggling liquefied natural gas (LNG) developer Tellurian (TELL.A) has announced the engagement of a financial advisor to address its balance sheet challenges.

This decision comes on the heels of the recent removal of Chairman and co-founder Charif Souki, which occurred shortly after auditors expressed concerns about the company’s ability to meet future financial obligations.

In a letter addressed to shareholders, Chairman Martin Houston disclosed that the financial advisor’s role will encompass shaping commercial strategies and assisting in managing the company’s balance sheet.

The move reflects Tellurian’s commitment to navigating its financial difficulties and charting a more stable course forward.

Earlier in the day, Tellurian took significant action by swapping $37.9 million in notes from a 2025 bond for shares and establishing an agreement that eliminated a looming debt payment due on January 1st.

Houston expressed optimism about these initial steps, hoping they would instill confidence in the company’s leadership.

He further emphasized that the financial advisor would provide invaluable support and guidance in the upcoming weeks.

Meanwhile, on the previous day, a filing revealed that another investor, Chatterjee Fund Management, had increased its stake in Tellurian from 5.2% to 7.3%.

This move by a prominent investor could signal renewed interest and support for the company, though it did not immediately halt the decline in Tellurian’s stock price, which fell 7.3% to approximately 88 cents following the disclosure.

At the time of this report, Tellurian had not yet responded to requests for comments regarding these developments.

It is worth noting that Charif Souki, a pioneer in the U.S. LNG export market since 1996, played a pivotal role in transforming Cheniere Energy from an LNG importer into a major exporter.

However, his endeavors at Tellurian did not replicate the same level of success.