Falcon Energy meets shareholders in informal meeting

SINGAPORE - Ahead of the upcoming maturity of its issued notes, Falcon Energy Group met with shareholders in an informal meeting Wednesday (June 14) to discuss further steps.

It said in a Singapore Exchange filing on Tuesday that the informal meeting was convened in order for the company to present the independent business review which it had appointed accounting firm KPMG to conduct.

The company intends to seek an extension of the maturity date of the notes and waive all financial covenants through a consent solicitation exercise.

It added that no specific duration of the extension period has been proposed and the terms of the consent soliticitation exercise has not been finalised.

It will convene a second informal meeting of noteholders, it said.

The company has S$50 million worth of 5.5 per centfixed rate bonds maturing on September 19. It said in May that the business environment "continues to be challenging due to intensified competition and clients' bargaining power." Margins for vessel charter rates and fees for oilfield services are "razor-thin", it added.