KrisEnergy gets three-month debt moratorium

Energy firm KrisEnergy, which produces oil and gas in South-east Asia, noted yesterday that it will submit to the court a valuation of its significant assets, together with the affidavit in support of the intended application for the valuation to be
Energy firm KrisEnergy, which produces oil and gas in South-east Asia, noted yesterday that it will submit to the court a valuation of its significant assets, together with the affidavit in support of the intended application for the valuation to be conducted on a liquidation basis. It will also submit financial reports at the end of each quarter after they are filed to the Singapore Exchange.PHOTO: KRISENERGY

Firm gets reprieve till Nov 14 while it restructures debt of $658m

Energy firm KrisEnergy will receive three months of court protection from creditors' legal action while it restructures debt of US$476.8 million (S$658 million), it said yesterday.

The High Court granted the moratorium to Nov 14, which was less than the six-month stay KrisEnergy had sought, at a hearing on Monday.

Keppel Corporation, a creditor and shareholder of KrisEnergy, had backed the application and the firm's management in formulating a restructuring plan.

KrisEnergy said last month that while its restructuring is ongoing, it will temporarily stop repaying the principal and interest payable on term loans of US$4.6 million due on Aug 21. It received a letter from HSBC on Aug 21 for the acceleration of the term facility agreement.

The mainboard-listed company, which produces oil and gas in South-east Asia, also temporarily stopped the repayment of interest under the due-2023 notes, amounting to $4.1 million, due on Aug 22.

The debt moratorium granted yesterday also applies to certain foreign creditors.

KrisEnergy said on Aug 30 that it had been working with the Securities Investors Association (Singapore) to engage with stakeholder groups.

KrisEnergy said last month that while its restructuring is ongoing, it will temporarily stop repaying the principal and interest payable on term loans of US$4.6 million due on Aug 21.

There was an informal investor meeting last night for holders of zero-coupon notes and ordinary shareholders.

The firm also noted yesterday that it will submit to the court a valuation of its significant assets, together with the affidavit in support of the intended application for the valuation to be conducted on a liquidation basis.

It will also submit financial reports at the end of each quarter after they are filed to the Singapore Exchange.

KrisEnergy shares have been suspended since Aug 14, when it announced its application for the debt moratorium.

A version of this article appeared in the print edition of The Straits Times on September 11, 2019, with the headline 'KrisEnergy gets three-month debt moratorium'. Print Edition | Subscribe