Falcon Energy aims to wrap up debt revamp in 2 months, faces more heat from Ambank

SINGAPORE-LISTED Falcon Energy Group (FEG) is looking to complete the restructuring of US$80 million of bank loans in the next two months, managing director P T Tan told The Business Times.

Mr Tan acknowledged that one of the four principal lenders, Ambank, has put pressure on the group. But he expressed confidence in the restructuring exercise progressing further with three other lenders, OCBC Bank, CIMB Bank and Maybank, indicating their support towards FEG.

FEG on Wednesday said that Ambank has filed another statutory demand against the Singapore-listed group. The latest legal correspondence from Ambank suggested the bank may stand to wind up FEG if the claim is not settled within 21 days.

But Mr Tan has countered that FEG's legal counsel has advised Ambank is not entitled to file this statutory demand at the moment.

Ambank is claiming over US$20.59 million, being alleged amount outstanding as at May 23 under term loans and revolving credit facilities granted to FEG's three subsidiaries - Century Marine SA, Excel Marine SA and Morrison Marine Services SA.

Mr Tan pointed out that Ambank's latest statutory demand is a step-up from earlier civil suits filed against FEG and its subsidiaries. He suggested that this situation facing FEG is far from unusual for listed companies undertaking debt restructuring.