KrisEnergy seeks to extend court protection till August

UPSTREAM oil-and-gas firm KrisEnergy has applied for a third extension of its debt moratorium to Aug 27, the mainboard-listed company announced in a Friday bourse filing. 

The beleaguered firm is seeking protection from creditors including DBS Bank, Keppel Shipyard, Rubicon Vantage International and holders of the various notes the company has issued. 

As at Dec 31, 2019, KrisEnergy had some US$503 million in borrowings and debt securities, bringing its gearing to 140.8 per cent. The debt includes its zero-coupon notes, a DBS revolving credit facility maturing at the end of June, the notes maturing in 2022 and 2023, as well as two unsecured term loans from HSBC and Standard Chartered Bank.

The company had also disclosed in April that it faces a US$7.7 million claim from an affiliate of Rubicon Vantage International. The affiliate had made the demand in relation to a parent-company guarantee from KrisEnergy under an October 2014 contract.

This guarantee centres on the operations of a floating storage and offloading facility. KrisEnergy had said that it believes the affiliate is not entitled to make a claim.

KrisEnergy will release a further announcement once the court fixes a hearing date for its application to extend the moratorium. Trading in shares of KrisEnergy has been suspended since last August.

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes