KrisEnergy submits winding-up petition

TROUBLED oil and gas group KrisEnergy announced in a regulatory update late on Friday that it has submitted a winding-up petition to the Grand Court of the Cayman Islands.

The firm said that based on actual and contingent liabilities, it is unable to pay its debts and will proceed with liquidation.

The decision comes as the company's liabilities have exceeded the value of assets. There is also a lack of acceptable alternative restructuring options and little possibility of near-term infusion of fresh funds.

KrisEnergy devised a restructuring plan after its revenue took a hit from lower oil prices and lower sales in 2019. As at June 30, 2019, total debt on the group's balance sheet was US$476.8 million, while gearing stood at 110.8 per cent.

But the restructuring plan was shelved given the "significantly lower ultimate recovery and cashflow" from its Apsara oil field in Cambodian oil concession Block A.

KrisEnergy shares last traded at S$0.03 before suspension in August 2019.