KrisEnergy unit to dodge winding-up petition after US$15.3m settlement with Rubicon

THE winding-up petition against a key subsidiary of debt-hit oil-and-gas company KrisEnergy will be withdrawn after KrisEnergy, together with four of its business units, on Tuesday reached a US$15.3 million settlement with Rubicon Vantage International and its affiliate.

Upon execution of the settlement deed, Rubicon will immediately withdraw the winding-up petition and its statutory demands against KrisEnergy's wholly owned subsidiary, KrisEnergy (Gulf of Thailand) (KEGOT) in the Cayman Islands.

KrisEnergy (Apsara) Company Ltd will enter into a new bareboat charter for the hire of a vessel, Rubicon Vantage, from Rubicon. Rubicon Vantage will be used in the Cambodia Block A Apsara oil field.

Rubicon had earlier filed claims against KrisEnergy and KEGOT in relation to a bareboat charterparty dated October 2014. Under Tuesday's settlement agreement, Rubicon, KrisEnergy and KEGOT will stop all legal action and claims related to this bareboat charter.

Rubicon and KEGOT will also apply jointly to the High Court of Justice - the Business and Property Courts of England and Wales to stop legal proceedings in the UK.

Rubicon will not commence any enforcement action in respect of the amount previously awarded by the English High Court in respect of claims under the bareboat charter guarantee.

Under the settlement reached on Tuesday, Rubicon and its affiliate Maritime International Services will have to file a proof of debt for the US$15.3 million settlement sum in the scheme of arrangement pursued by KrisEnergy in the Singapore High Court, where it is seeking to restructure debts of US$476.8 million.

Rubicon and Maritime have agreed that the filing of the proof of debt and any distribution shall constitute full and final settlement.

KrisEnergy shares have been suspended from trading since August last year.