Charisma Energy’s conditional subscription agreement lapses, company may be wound up

CHARISMA Energy Services could be liquidated, now that a conditional subscription agreement that would have given it the much-needed lifeline has lapsed.

The Catalist-listed company said in a statement to the Singapore Exchange on Tuesday (Jul 12) that the long-stop date of the conditional subscription agreement in relation to the new investment lapsed on Jul 9.

Chief executive officer Tan Ser Ko noted in the regulatory filing: “The lapse of the long-stop date, coupled with the company running low on its unencumbered cash balances, have resulted in the company having to consider and assess other options, which may include, but are not limited, to the eventual liquidation of the company.”

Charisma and Yin Khing Investments had signed a conditional subscription agreement in January for the investor to subscribe shares amounting to about S$16.1 million. However, because its creditors, Yin Khing and the company could not agree on the terms and conditions of the proposed debt restructuring by the stipulated date, the subscription agreement has failed to take effect.

Charisma remains engaged in discussions with its creditors and Yin Khing Investments, and is evaluating and assessing all available options, the company said.

Trading in Charisma shares is currently suspended. It is an associate of Ezion Holdings, which has been ordered by the court to wind up and has been delisted from the mainboard.