Perisai turns to Malaysian govt platform for help in negotiations with lenders

PERISAI Petroleum Teknologi, a Malaysian associate company of Emas Offshore Limited, has received a reprieve in its negotiations with its lenders with the help of a government initiative.

Perisai had earlier applied to the Corporate Debt Restructuring Committee - a platform formed by the Malaysian government in 1998 for corporate borrowers and their creditors to work out debt resolutions without resorting to legal proceedings - for help.

The CDRC accepted this application on Nov 9 and issued a letter the following day to lenders of Perisai in Singapore and Malaysia, as well as the trustee of its outstanding S$125 million notes, said Emas Offshore in an announcement on Friday evening.

All lenders are required to observe an informal standstill with immediate effect, and withhold proceedings against the Perisai group which includes SJR Marine (L) Ltd, Emas Victoria (L) Bhd and Intan Offshore (L) Ltd. Emas Offshore holds a 49 per cent stake in these Perisai subsidiaries.

Perisai will have 60 days to submit a proposal for a debt restructuring scheme, after which CDRC will call for a meeting with the lenders.

"The company is monitoring the situation and assessing the impact on the group," said Emas Offshore. "Further announcements will be made in due course as and when appropriate."