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Singapore's KrisEnergy warns debt covenants may come under stress
[SINGAPORE] Singapore oil and gas exploration firm KrisEnergy Ltd on Sunday said some covenants on existing debt agreements could come under stress in the near term as weaker oil markets hit revenue.
The company said in a statement that it had engaged "external parties" to help look for ways to strengthen its capital structure as it grapples with the impact of a plunge in oil prices.
"These measures may entail a form of issuance of equity or an equity-linked instrument, a refinancing of our capital structure, and/or the divestment or farm-out of assets," said the company, which counts rigbuilder Keppel Corp as one of its largest shareholders.
Its ability to raise financing has been severely curbed, it said, while reporting a net loss for its second quarter.
Oilfield services firm Swiber Holdings a few weeks ago applied to place itself under judicial management, after initially filing for liquidation, becoming the largest local company to fall victim to the slump in oil prices.