Judge cites 'clear case of balance sheet insolvency' for placing KS Energy, key unit under IJM

IN granting OCBC's application to place embattled KS Energy and its key unit under interim judicial management (IJM), High Court Justice Aedit Abdullah said there is a "very clear case of balance sheet insolvency" at the oil services group and that a JM order would seem highly likely, "short of a miracle".

"While miracles can sometimes happen even in commercial settings, some evidence would typically need to be provided of a 'white knight' on the verge of coming to the rescue," the judge said in a brief grounds of decision seen by The Business Times (BT) on Friday.

In particular, the judge said, figures and specific proposals should be placed before the court to show that KS Energy will be able to answer an application for JM.