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KrisEnergy starts UK legal proceedings, says Rubicon unit seeking US$5.4m payment
UPSTREAM oil and gas company KrisEnergy, which is undergoing debt restructuring, on Monday said an affiliate of Rubicon Vantage International is seeking payment of about US$5.4 million.
KrisEnergy said the affiliate, Maritime International Services (MIS), “has sought to make a demand” against it, in relation to a parent company guarantee from KrisEnergy under an October 2014 contract.
This guarantee secures the performance of its Thai wholly-owned subsidiary KrisEnergy (Gulf of Thailand)’s (KEGOT) obligations to MIS under the contract for the operations and maintenance of the “Rubicon Vantage” floating storage and offloading facility.
KrisEnergy said on Monday that after consultation with legal advisers, it is of the view that MIS is not entitled to claim under the parent company guarantee.
“The company intends to vigorously resist and refuse any and all allegations or claims made against it,” it added.
Rubicon has earlier also filed claims against KrisEnergy and the Thai subsidiary in relation to a bareboat charter dated October 2014. Under this charter, KrisEnergy had also issued a guarantee to secure the performance of KEGOT’s obligations to Rubicon.
Rubicon’s claims included a statutory demand for US$2.84 million filed against KEGOT in February this year, as well as a letter of demand sent to KrisEnergy in August last year for the repayment of US$2.6 million from a UK court judgment.
On Monday, KrisEnergy said that KEGOT, as the charterer under the bareboat charter, has issued legal proceedings against Rubicon in the High Court of Justice - Business and Property Courts of England and Wales.
KEGOT is seeking, among other things, damages for breaches of the charter, damages for misrepresentation and an indemnity in respect of the amount awarded by the English High Court for the claims under the bareboat charter guarantee.
Last August, the Singapore High Court granted KrisEnergy a moratorium to restrain Rubicon from taking any enforcement steps including pursuing the winding up of KrisEnergy in any jurisdiction. This is to allow KrisEnergy an opportunity to restructure its debt obligations in a manner that will be fair and equitable to all its stakeholders.
The moratorium has been extended till May 27, 2020.
Trading in KrisEnergy shares has been suspended since August 2019.