KrisEnergy, Keppel unit extend restructuring completion date in loan agreement

Fiona Lam

Published Thu, Jul 9, 2020 · 12:34 AM

THE completion date of upstream oil and gas firm KrisEnergy's debt restructuring has been extended to Sept 30 from July 15, under an amended loan agreement with Kepinvest Singapore.

Kepinvest, wholly owned by Keppel Corporation, is the lender in an up to US$87 million credit facility agreement inked in April. The borrowers are KrisEnergy's wholly-owned subsidiaries KrisEnergy (Apsara) Company and KrisEnergy (Cambodia).

The failure to complete the restructuring of the financial indebtedness of KrisEnergy and KrisEnergy (Asia) by July 15 was one of the mandatory prepayment events under the facility agreement.

Keppel said in a bourse filing late Wednesday night that the extension of the completion date was meant to "facilitate a consensual restructuring and to support KrisEnergy's management whilst they discuss and obtain feedback from stakeholders on the restructuring".

The Kepinvest credit facility was provided to finance KrisEnergy's near-term development project at Cambodia Block A, an offshore oil and gas asset in the Khmer Basin in the Gulf of Thailand. The KrisEnergy group has a 95 per cent working interest in the 3,083 square kilometre project.

Keppel reiterated that it reserves the right to evaluate KrisEnergy's debt restructuring plan, and to approve or reject the plan as Keppel deems fit in its best interests.