Charisma Energy receives notices of demand for US$8 million debt

CATALIST-LISTED Charisma Energy said on Friday (Feb 3) that the company and its wholly-owned subsidiary, Anchor Marine 3, have received notices of demand from one of the secured lending banks of the group.

The bank said that since the maturity date of Jan 5 last year, Anchor Marine 3 has failed to make full payments under a facility agreement dated Dec 18, 2014, and the bank is declaring an event of default under the facility agreement.

Anchor Marine 3 would be required to make payment and discharge the entirety of the secured obligations which amounted to US$8 million as at Feb 1, 2023. The payment is due by close of business on Feb 3.

Meanwhile, Charisma Energy was issued a notice of demand, as it had guaranteed to pay on demand as principal debtor all sums due and owing from Anchor Marine 3 under the facility agreement.

Charisma Energy said it has written to the bank in relation to the notices of demand “to seek the bank’s continuous support in the new debt restructuring discussions”.

The counter has been suspended from trading since February 2019, and it has been taking steps to complete debt restructuring and recapitalisation exercises, “which will allow the group to operate on a going concern basis and resume trading”.

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“The completion of the corporate actions undertaken by the company pursuant to the debt restructuring and recapitalisation exercises is subject to obtaining the requisite approvals from various stakeholders of the group (including the bank),” Charisma Energy said.

“Should these corporate actions fail to complete, the company will not be able to operate on a going concern basis or resume trading and will have to consider and assess alternative options, including but not limited to liquidation.“